DTCC Hype Continues To Widen XRP And XLM Divergence

• Images related to DTCC’s collateral eligibility triggered speculations that the institution is imposing restrictions on XRP in favor of XLM.
• The narrative widened the divergence of the token as they navigate the RWA tokenization market.

The crypto market has undoubtedly matured from a speculative nature to real-world applications. However, there’s no doubt that hype still holds major influence over retail investor behavior.

A recent FUD (Fear, Uncertainty, Doubt) piece related to the Depository Trust and Clearing Corporation (DTCC) just proved that emotions still heavily drive the market. In the past few days, images circulating online related to DTCC collateral eligibility triggered public perception that XRP faces restrictions in institutions and trading platforms.

Retail Rotation From XRP to XLM

Bitget also confirmed that the misinformation led retail players to rotate their capital from XRP to Stellar (XLM). It comes hot on the heels of the Stellar Development Foundation and DTCC’s announcement last month that XLM’s network will facilitate the Depository Trust Company’s (DTC) tokenized real-world assets (RWAs) by the first half of 2027.

XRP eventually stabilized as market experts clarified that DTCC documents have no bearing on crypto exclusions on exchanges or institutional trading. They claimed that the list only determined which assets can be accepted as collateral in specific internal clearing and margin processes.

XRP and XLM Divergence

Over the years, XRP and XLM have maintained a historically high correlation, often exceeding 0.85 and 0.95. Their communities constantly packaged their parallel utility as a step up from traditional financial systems.

Under the narrative, XRP serves as a decentralized institutional gateway for efficient, fast cross-border payments. Meanwhile, XLM presents itself as a digital asset focused on retail use.

The two have been blurring their boundaries, though, as they have emerged as major players in institutional RWA tokenization projects. Macroaxis indicates a significant drop in their correlation to 0.38, indicating an evolution in their dynamics amid the rapidly changing market.

Their decoupling reflects how sophisticated traders are now pricing the assets based on their network-specific developments and institutional adoption rather than treating them as a parallel pair relative to their foundational DNA.

RWA Advances of XRPL and Stellar

As of Sunday, the RWA market showed a global market cap of $727.63 billion. XRP Ledger (XRPL) accounted for $4.85 billion of the float, driven by its strong performance in tokenized commodities and the growing adoption of the Ripple USD (RLUSD) stablecoin.

A recent video featuring Ripple CTO Emeritus David Schwartz highlighted that XRP’s utility is expanding from cross-border payments to RWA tokenization. It’s an emerging player in tokenized repos and tokenized loans.

“Enterprises will provide the features that will attract mass retail adoption where DeFi (Decentralized Finance) can truly deliver on its promise of replacing TraFi (Traditional Finance) and providing the financial services that everyone needs,” said Schwartz.

On the other hand, Stellar now has a $2.55 billion share in tokenized RWAs. It’s currently a rising star in US Treasuries, corporate credit, and non-government debt tokenization.

The post DTCC Hype Continues To Widen XRP And XLM Divergence appeared first on Blockzeit.