The crypto market faced a sharp sell-off on May 28 after Iran launched an attack on a U.S. air base in Bahrain. Bitcoin dropped below $73,000 for the first time since mid-April, Ethereum slipped under $2,000, and the total crypto market cap shed 3.5% in a single day. Over $200 million in leveraged positions were liquidated, with Bitcoin alone accounting for nearly $298 million in losses. Against this backdrop, Stellar's XLM token staged a remarkable rally, climbing more than 20% since Wednesday morning and briefly touching $0.18 after months of sideways movement.
The catalyst was a major announcement from the Depository Trust & Clearing Corporation (DTCC). On May 27, the DTCC and the Stellar Development Foundation (SDF) revealed plans to connect DTC's tokenization platform to the Stellar public blockchain. The initiative is part of DTCC's multi-chain strategy for tokenized real-world assets and is expected to support blue-chip equities, ETFs, and U.S. Treasuries by the first half of 2027. The collaboration follows a No-Action Letter the SEC granted to DTCC in December 2025, providing legal clarity for the tokenization of DTC-custodied assets.
DTCC emphasized that tokenized assets on Stellar would retain the same investor protections, entitlements, and safeguards as traditionally held securities. The platform will also facilitate asset lifecycle functions such as corporate actions and reporting. DTCC President and CEO Frank La Salla stated that the partnership supports an open and interoperable digital infrastructure, while SDF CEO Denelle Dixon highlighted Stellar's compliance-focused design, low transaction costs, and high throughput as key factors in the selection.
XLM's market cap rose 8.3% to $5.37 billion, and trading volume surged 244% to $308.85 million following the news. However, the token faces significant resistance near $0.18–$0.21, and the rally has already cooled from the $0.18 region. Broader market weakness remains a risk, but analysts point to key support at $0.15 and potential upside targets at $0.28–$0.32 if momentum resumes.
