Columbia Professor Says Stellar, Not Ethereum, Suits Global Finance

A Columbia Business School professor has raised doubts about whether Ethereum is truly the right fit for serving as the backbone of global finance. Austin Campbell, an adjunct professor, argues that the Stellar network (XLM) is actually better aligned with what mainstream finance needs. His comments come right after a major announcement from the U.S. Depository Trust & Clearing Corporation (DTCC), which plans to tokenize its custodial assets on the Stellar blockchain.

Why Stellar Over Ethereum?

Campbell explained in a series of posts on X (formerly Twitter) that the DTCC’s choice of Stellar was not arbitrary at all. He stated that while Ethereum strongly values censorship resistance, this very feature makes it a poor match for regulated global finance. “Censorship-resistant money and the mainstream global financial system are fundamentally incompatible,” he wrote. He added that decentralization brings real operational costs that often don’t pay off for institutional users. Stellar, in contrast, offers open access but uses a trust-based consensus algorithm. This design lets financial institutions choose their transaction partners directly, which is a critical feature for compliance and risk management.

Control Features in a Public Ledger

Campbell pointed out that Stellar’s Layer 1 protocol supports essential control functions that large financial entities simply cannot ignore. These include the ability to freeze assets, seize funds, and maintain whitelists of approved participants. To become mainstream financial infrastructure, he argued, a ledger must be open for participation but also capable of blocking malicious actors. This practical view stands in contrast to the ethos of many public blockchains that prioritize absolute decentralization. The professor’s comments add a nuanced layer to the ongoing debate about the future of tokenized real-world assets (RWA). The DTCC, a critical backbone of U.S. capital markets, recently announced its intention to tokenize custodial assets on the Stellar network, with a target launch in the first half of 2027. That selection by such a central market infrastructure player gives significant weight to Campbell’s argument about Stellar’s practicality for institutional adoption.

Implications for the Crypto Market

This development might signal a shift in how major financial institutions view blockchain technology. The preference for a network that balances openness with control suggests that the future of tokenized assets may not belong to the most decentralized networks, but rather to those that can most effectively bridge blockchain innovation and regulatory reality. For Ethereum, which has long been seen as the default platform for decentralized finance (DeFi) and tokenization, Campbell’s critique represents a clear challenge. It raises real questions about whether its core design principles are a strength or a liability when trying to attract institutional capital.

Looking Ahead

The debate between idealistic decentralization and practical compliance is now happening in real time, with major financial players involved. Austin Campbell’s analysis, grounded in the DTCC’s concrete decision, provides a clear argument for why networks like Stellar may be better suited for the future of global finance. The coming years will reveal whether the market actually agrees with this vision.

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