One of the greatest use-cases of Stellar XLM is in asset tokenization. While this may have looked like a far-fetched idea, one year ago, it is beginning to take shape. Robinhood a financial technology company that offers stocks, and lately cryptos, will have its private shares tokenized on the stellar blockchain by another Fintech startup called Swarm. Swarm is also working on doing the same for Ripple, and other companies.
This is big deal because it changes the way investors look at securities, a change that could spark a revolution on the global stock markets. We could be headed into a world where anyone around the world could hold security tokens for any of the major companies in the world. Imagine holding a security token for a company like Coinbase, Ripple or any of those high-potential companies that will in the near-future change the global financial landscape as we know it today? That would be huge, right? The demand it would spark would drive the markets crazy, pushing several corporations into multi-trillion valuations.
So what does all this mean for stellar (XLM) investors? Well, stellar investors could be headed into a major bull-run. That’s because when tokens are issued on the stellar network, transaction fees are made in Stellar (XLM). As such, asset tokenization for high-demand companies adds to the demand of stellar, which will over time drive up the value of stellar lumens (XLM). The best part is that asset tokenization seems to be gaining momentum, and companies like Robinhood are just the beginning. Already decentralized stock exchanges such as DSTOQ are coming up, and aim to make stock markets more accessible through tokenization. These are moves that place stellar among the cryptos with the most promising future.
Besides, as more companies begin to tokenize on stellar, the stellar blockchain stands to become the standard, and invalidate any competing blockchains aiming for the same market. The head-start that Stellar has in this market could see it become the sole blockchain used in asset tokenization. When compared to other blockchains in the market that have tens of competitors angling for the same market, Stellar seems to have cut itself a niche in the asset tokenization market. This dominance places it in a situation where it could be used to tokenize the global stock exchanges that are not only worth trillions of dollars, but are also the key driving force behind the world economy.
Price-wise, stellar seems to be reacting quite well to the growing wave of good news around it. In the 12-hour charts, Stellar is an early bull run. It has established a clear support at $0.212 and with the increased momentum in the whole market, Stellar (XLM) could test the $0.24 resistance level at the 100-day moving average within the day. Long–term, as the whole idea of asset-tokenization begins to take shape, Stellar could easily be worth 10s of dollars, and reward those who can see the vision before it takes shape.