Stellar's native compliance features like clawback, asset freezing, and privacy controls address why institutions haven't moved onchain. With $1.4B in tokenized real-world assets and partners like Franklin Templeton, Stellar positions itself as institutional settlement infrastructure rather than DeFi.
Institutions want blockchain efficiency but need privacy, compliance controls, and asset segregation that most chains don't provide. Stellar built these features natively into its protocol: clawback functionality, asset freezing, error correction, and the ability to run different compliance regimes on the same network. PayPal demonstrated active use of clawback in early 2026. The article argues open networks evolve faster than private chains and that Stellar's approach preserves immutability of transaction history while enabling auditable compliance. Over $1.4B in tokenized real-world assets now exist on Stellar from issuers including Franklin Templeton, WisdomTree, and Ondo Finance, positioning Stellar as institutional settlement infrastructure.
