Stellar Users Can Now Borrow USDC Using XLM as Collateral via Templar Protocol

• Templar is launching on Stellar, enabling XLM deposits to borrow USDC, with no wrapping barriers.
• XLM attempts a slight recovery, yet bearish signals persist with a Death Cross and low momentum readings.

Templar, the first Cypher Lending Protocol, has officially launched on the Stellar network, giving users the ability to deposit XLM and borrow stablecoins such as USDC across multiple blockchains. The integration enables borrowing directly through Stellar wallets without the need for bridges or wrapped tokens.

Templar operates through NEAR’s multi-party computation (MPC) network and Chain Signatures, ensuring that deposits from Stellar wallets are handled securely and without cross-chain complications. 

USDC borrowing is available not only on Stellar but can also be accessed on Ethereum, Solana, NEAR, and other supported chains. Through this structure, liquidity moves smoothly between supported networks.

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Templar, the first Cypher Lending Protocol, is launching on @StellarOrg to unlock multichain XLM & RWA lending.

Stellar users can now deposit XLM to borrow USDC on Stellar! pic.twitter.com/o85gwbrGjh

— Templar Protocol (@TemplarProtocol) November 5, 2025

Borrowing Options Broaden with Benji Integration

This launch is part of a larger collaboration between Templar and Stellar that focuses on tokenized real-world assets (RWAs). Stellar has already established a presence in this sector,  supporting tokenized instruments such as Franklin Templeton’s U.S. Government Money Fund (Benji). 

Templar states plans to integrate Benji as a borrowing option while also exploring adding more assets from RWA projects, such as Centrifuge. This opens liquidity routes for tokenized assets on Stellar and supports permissionless access in the DeFi space.

With this step, the range of assets available on the Templar protocol expands, bringing it closer to the goal of enabling anyone to borrow seamlessly against any asset across any chain.

Centrifuge recently announced a $20 million deployment on Stellar, while Mercado Bitcoin shared plans for a $200 million tokenization effort. PYUSD from PayPal and USDY from Ondo Finance have also been introduced on the network.

Stellar now holds over $500 million in tokenized real-world assets, excluding stablecoins. This marks a roughly 25% year-over-year increase. With near-zero transaction costs and financial rails that accommodate both retail and institutional users, the network continues to draw interest from firms looking to issue or interact with tokenized assets.

Death Cross Signals Deeper Drop for Stellar

Stellar’s XLM token attempted to recover on Wednesday after two consecutive sessions in the red, trading at $0.2704 with a 1% intraday gain. The move came as the altcoin broke below a falling channel pattern, raising caution among traders about a potential continuation toward the $0.2200 support area.

Market analyst Peter Brandt pointed out the breakout, warning that weakening retail demand could deepen the correction.

The technical setup for the token has turned bearish after the 50-day Exponential Moving Average crossed below the 200-day EMA on Monday, forming a Death Cross pattern. This signal generally suggests an extended downtrend ahead, aligning with XLM’s recent pullback from its early-month peaks.

 The Relative Strength Index is hovering around 30, and the MACD line is trending below its signal line. These readings reflect heightened selling pressure and persistent downward momentum. However, a daily close above the June 11 high of $0.2851 could restore short-term optimism and pave the way toward the $0.3000 mark.