# Stellar Surpasses Ethereum in Government Debt Tokenization Stellar takes the lead in tokenizing non-US government debt. - **Source:** [DailyCoin](https://brifing.si/source/3e9b0f85-cb2f-40ee-ba61-db9410cf0937) - **Published:** 2026-08-04 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/df53fa86-dc75-4263-bdb2-90945b21903e ## Stellar's Growth Stellar has seen significant growth in the real-world asset (RWA) market this year. XLM surpassed Ethereum in tokenizing non-US government debt. This success was made possible by Stellar's low fees and fast transaction processes. The value of tokenized debt has now exceeded $520 million and continues to rise. ## Non-US Government Debt Stellar has taken the lead in tokenizing non-US government debt. Instruments like Mexican CETES, Brazilian Tesouro, European government bonds, and South Korean KTBs have been tokenized on Stellar. Ethereum still dominates the US Treasury bonds market. ## Stablebonds and Etherfuse Platforms like Etherfuse have issued 'Stablebonds,' tokenized funds backed by short-term government debt from various countries. Debt instruments from Mexico, Brazil, Europe, and South Korea have been tokenized in this way. ## Stellar's Technological Advantages Stellar's low fees, fast transaction processes, and payment-focused design make it an ideal platform for such tokenization projects. Its ability to offer fast and cost-effective cross-border transactions has made it a preferred choice. ## USDC Integration Circle's USDC is natively supported on Stellar and integrated with the Cross-Chain Transfer Protocol (CCTP). This provides seamless access to dollar liquidity for Stellar. USDC integration offers a significant advantage for tokenized assets and real-world payments. ## Marshall Islands Example Small-scale government experiments have also been conducted on Stellar. The Marshall Islands tokenized digital government bonds to fund universal basic income payments. This shows that Stellar is suitable not only for large but also for small-scale projects. ## The Tokenization Race Tokenization usually revolves around big markets and big names. While US Treasury bonds make headlines, non-US government debt has received less attention. However, Stellar has quietly taken the lead in this area. ## Stellar's Future Stellar has gained a clear advantage in the tokenization race. Tokenized debt exceeding $520 million demonstrates Stellar's growth potential in this field. USDC integration and low fees could make Stellar an even stronger platform in the future. ## Sources covering this story - https://dailycoin.com/stellar-flips-ethereum-in-government-debt-tokenization/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._