thecryptobasic.com
Cardano founder Charles Hoskinson has defended Stellar following criticism surrounding its newly announced collaboration with the Depository Trust & Clearing Corporation (DTCC).
The controversy emerged after DTCC announced plans to enable the tokenization of DTC-custodied assets on the Stellar network by the first half of 2027.
While many participants across the crypto and traditional finance sectors welcomed the development, critics questioned Stellar’s blockchain architecture and whether it provides the same security guarantees as proof-of-stake or proof-of-work networks. In response, Hoskinson publicly defended the network.
Key Points
- Cardano founder Charles Hoskinson defended Stellar after critics questioned its legitimacy as a blockchain.
- The debate began following DTCC’s announcement about tokenizing assets on Stellar.
- Hoskinson has consistently maintained a positive view of Stellar and its founder, Jed McCaleb, over the years.
- $XLM token, which surged more than 100% in weeks to $0.5194, is now trading at $0.1702.
Critics Slam Stellar Following Its Collaboration with DTCC
The debate started after DTCC and the Stellar Development Foundation (SDF) announced plans to support the tokenization of traditional financial assets on the Stellar network.
According to the announcement, the initiative aims to strengthen DTCC’s multi-chain strategy while improving interoperability between traditional finance and blockchain infrastructure. DTC-tokenized assets are expected to launch on Stellar in 2027.
However, the announcement quickly sparked criticism from crypto commentator Omid Malekan, who argued that Stellar is “not a legitimate blockchain.” Malekan claimed that Stellar lacks economic security. He also criticized Stellar’s consensus model, which relies on the Stellar Consensus Protocol (SCP), arguing that it depends on trusted validator relationships instead of open economic competition.
Meanwhile, Stellar protocol developer Garand Tyson responded sarcastically by agreeing with several of the criticisms. Tyson pointed out that Stellar validators are publicly known, cannot perform MEV extraction, cannot manipulate transaction ordering, and rely on community trust rather than token-based economic incentives.
Cardano Founder Defends Stellar
Amid the growing criticism, Hoskinson stepped in to defend Stellar and questioned the hostility directed toward the network. He argued that Stellar remains a perfectly legitimate technology. His comments suggested that blockchain systems do not all need to follow the same model to be considered valid or useful.
Did Stellar kill this guy's dog? It's prefectly legitimate technology
— Charles Hoskinson (@IOHK_Charles) May 28, 2026
Hoskinson’s Longstanding Support for Stellar
Notably, Hoskinson has maintained a respectful relationship with Stellar and its founder, Jed McCaleb, for years. In 2024, Hoskinson revealed that he had communicated with McCaleb and described the Stellar team as “good people.” He also disclosed that Stellar participates in several industry initiatives alongside Cardano.
Hoskinson’s positive stance toward Stellar dates back several years. In 2017, he publicly stated that he wanted the Stellar ecosystem to succeed. He also praised the Stellar whitepaper, describing it as an interesting and worthwhile study.
More recently, in July 2025, Hoskinson congratulated Stellar’s $XLM token and Hedera after both assets recorded major rallies. At the time, $XLM surged more than 100% within weeks to $0.5194. Hoskinson described the rally as evidence that both ecosystems had survived difficult market cycles and continued to grow.
Since then, however, $XLM has declined sharply alongside the broader crypto market and currently trades at $0.1702. Despite the broader market downturn, the token has still gained 15.59% over the past 24 hours, even as most major cryptocurrencies remain in the red during the same period.