Stellar's native token XLM soared over 40% on May 29 after the Depository Trust & Clearing Corporation (DTCC) revealed plans to integrate the Stellar network into its tokenized asset platform. The rally pushed XLM above $0.24, with trading volume exploding by more than 800% as institutional validation sparked a massive short squeeze.
The DTCC, which processes trillions of dollars in securities transactions annually and safeguards over $114 trillion in assets, will connect tokenized stocks, ETFs, and U.S. Treasuries to Stellar as part of a multi-chain strategy. The integration is slated for the first half of 2027, but the announcement alone reignited confidence in Stellar's infrastructure for real-world asset (RWA) tokenization.
Derivatives markets accelerated the move: over $12 million in short positions were liquidated, open interest nearly doubled, and funding rates turned sharply negative. This combination of spot buying and forced short covering created one of Stellar’s strongest rallies in years, lifting its market cap above $8 billion.
Meanwhile, the breakout highlighted a growing divergence from XRP, which has historically moved in tandem with XLM. Analyst Kevin Cage noted the correlation breakdown, asking whether XRP could follow in June. While XRP consolidated around $1.29, traders rotated into XLM, fueling debate about the two assets' shared origins and valuation gap.
The DTCC endorsement positions Stellar within the rapidly expanding tokenization sector, potentially boosting long-term network activity and developer interest. However, with the integration still nearly two years out and technical indicators pointing to overbought conditions, the rally faces profit-taking risks. For now, Stellar enjoys one of its strongest institutional catalysts to date, and market participants will be watching for further milestones.
