Stellar customers can now borrow USDC with XLM as collateral via the Templar protocol
- Templar Protocol launches on Stellar and enables XLM-backed USDC loans without network technical contortions via bridges or wrapping.
- Stellar expands DeFi presence through Templar RWA lending, improving liquidity and crosschain access.
Templar Protocol, the first Cypher lending protocol, has officially launched on the Stellar network and aims to improve multichain XLM and real-world asset lending. This allows Stellar customers to borrow USDC using their XLM holdings while maintaining the efficiency, security and transaction performance of the network.
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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
With this launch, Stellar users will be able to use their XLM as collateral and receive USDC directly on the network without using bridges or wrapped tokens. The partnership between Templar and Stellar promotes decentralized lending and gives digital asset holders easier access to borrowing across connected blockchains.
The initiative highlights Stellar’s expansion into the decentralized finance space through a seamless system that connects multiple chains while keeping liquidity under users’ control. By adopting this lending model, Stellar will become a stronger player in the growing market of real-world asset-based DeFi products.
Templar enables cross-chain lending
Templar works with the NEAR Multi-Party-Computation (MPC) network and Chain Signatures to make cross-chain lending easy and frictionless. It allows users to deposit and borrow across Stellar, Ethereum, NEAR and Solana without using additional wallets. Every transaction remains clear and direct, creating a faster, safer and more reliable lending experience.
The protocol’s design eliminates delays and risks often encountered in bridge-based systems. Borrowers can access stablecoins like USDC on various networks using just one Stellar wallet. This makes lending easier and helps XLM become more widespread, boosting the activity and growth of the decentralized market.
Templar’s design promotes interoperability and helps liquidity move smoothly between different networks. This model allows new chains to join the ecosystem every month, making it easier to access Stellar assets and providing lenders and borrowers more flexibility with stable digital liquidity.
The collaboration between Templar and Stellar represents a step forward in multichain lending infrastructure, demonstrating how users can have access to more financial opportunities and enjoy stability and flexibility while moving assets across decentralized markets.
Stellar strengthens DeFi with real-world assets
This launch also marks the beginning of Stellar’s expanded focus on tokenized real-world assets. Templar allows users to borrow using Franklin Templeton’s Benji Fund, PayPal’s PYUSD and Centrifuge tokens. These options help make Stellar a trusted network for decentralized lending based on real-world assets.
Centrifuge’s $20 million RWA deployment, Mercado Bitcoin’s $200 million tokenization program, and PayPal’s PYUSD launch add to Stellar’s asset pool. These partnerships demonstrate the network’s ability to handle tokenized finance and give users across all sectors more borrowing options.
Templar plans to add additional assets from recognized RWA teams such as Centrifuge. Templar aims to make borrowing easy and safe for anyone who holds approved digital or tokenized assets. This approach creates trust and gives people direct access to stable loans in the DeFi space.
By unlocking liquidity through asset-backed lending, Templar strengthens Stellar’s ecosystem and demonstrates its growing role as a major hub for decentralized lending. Offering stablecoin lending, RWA access, and multi-chain support provides a strong foundation for steady network growth.
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