In a significant regulatory development, United States regulators have formally classified both Hedera (HBAR) and Stellar (XLM) as digital commodities. This classification shifts their regulatory status away from potential securities and places them under a framework similar to Bitcoin, removing a major legal overhang that had previously deterred large-scale institutional investment.
The decision for Hedera comes as the Canary Capital spot HBAR exchange-traded fund (ETF), launched in Q4 2025, has recorded $94.3 million in cumulative net inflows since its inception, with only a single day of net outflows. Market observers note that while inflows have been steady, they have also been muted, indicating cautious but stable institutional interest. The regulatory clarity is expected to accelerate this participation, as it provides a defined structure for compliance and reporting that aligns with traditional investment policies.
Similarly, Stellar's XLM token has entered what industry participants call an "elite commodity club," joining Bitcoin, XRP, Solana, and Cardano. Stellar Development Foundation CEO Denelle Dixon celebrated the move, stating it validates the network's long-term strategy as a public good for global payments. The classification is bolstered by Stellar's growing role in real-world asset (RWA) tokenization, with over $1.4 billion in assets deployed on its Soroban smart contract platform. Major institutions like Franklin Templeton and European initiatives such as the $447 million Spiko EU T-Bills fund are already operating on the network.
This dual classification marks a pivotal shift, ending the perceived exclusivity of XRP's legal clarity for payment-focused assets. Experts anticipate the move will facilitate a wave of new institutional products, including potential Stellar-based ETFs before the end of 2026, and further solidify both networks' positions in the modern financial infrastructure.
