Key Takeaways:
- As of last week, Stellar has $490 million in tokenized non-US government debt, outperforming all other public blockchains in that category since February.
- Stellar’s tokenized RWA value, with stablecoins excluded, increased by more than 10 times from early 2025 until June 2026.
- Mexico, Brazil, South Korea and European government debt are rocket fuel for growth of Stellar in onchain sovereign markets.
Government debt is moving deeper into crypto infrastructure, and Stellar has emerged as the leading blockchain for tokenized sovereign debt issued outside the United States. According to RWA.xyz data cited by Stellar, the network held roughly $490 million in this category as of August 20, 2026.
Stellar Overtakes Ethereum in Non-US Sovereign Debt
Stellar moved ahead of Ethereum in tokenized non-US government debt in February and has maintained the lead since then. The figure covers sovereign instruments issued outside the US and denominated in currencies other than the US dollar.
Ethereum is the largest blockchain for US Treasuries and is a market leader in the broader RWA landscape. Where as far as government debt is concerned, the dominant and growing area of the country’s debt is currently on international terms.
The move coincides with a significant growth in Stellar’s RWA product portfolio. All the other tokens on the network rose from $500 million to $854.6 million by the end of 2025, excluding the stablecoins.
In January 2026, it reached $1 billion, increasing to $1.52 billion at the end of Q1, before hitting $2 billion in April, and $3 billion in June.
Read More: Solana RWA Value Explodes 300% to $4B, Adding $3 Billion in Under 12 Months
Mexican CETES and Euro T-Bills Drive Growth
There is a range of products to aid Stellar’s adoption in sovereign debt. Meanwhile, Etherfuse has moved Mexican CETES, and Brazilian Treasury bills onto the blockchain in its Stablebonds products, and Spiko’s euro-fixated Treasury bill fund has surged from approximately $520 million to $970 million a year ago, most of which has happened on Stellar.
Geographic diversity is also added to the government-debt activity of the network with the addition of government-baked tokens representing South Korean Treasury Bonds and a digital sovereign bond from the Marshall Islands.
Stablecoins Add Liquidity to Tokenized Debt
Meanwhile, Steller’s own government-debt growth takes place in a time of growing stablecoin activity. Total payment amount has surged by 72% year-over-year, reaching $5.5 billion during the Q1 2026. There was also a 75% increase in transaction velocity.
The euro-denominated projects like EURCV, developed by Société Générale-FORGE, and EURAU, by AllUnity, grew while the total USDC market capitalization surpassed $256 million in Q1.
For tokenized government debt, that infrastructure matters because investors need a liquid digital settlement asset alongside the underlying security.
Why Stellar Is Attracting Sovereign Debt
Architecture of Stellar focuses on cross-border and multi-currency payments with the transaction fee being minimal sizes of a cent and the settlement completed within seconds. Additionally the network offers asset-based controls and features for compliance with financial products which are regulated.
Leading financial institutions and tokenized products already are part of the ecosystem. The assets running on Stellar include Franklin Templeton’s BENJI, Ondo’s USDY and WisdomTree’s WTGXX, with various institutions like U.S. Bank becoming involved in the larger ecosystem.
As the RWAs go beyond US Treasuries, the initial advantage that a network like Stellar enjoys is overstretched to non-US sovereign debt in the next series of financial market moves in the blockchain realm.
Read More: BTC Markets Targets Tokenized Asset Trading as $26B RWA Market Sparks New Push
