Cardano founder Charles Hoskinson has defended the Stellar network after a wave of criticism followed its collaboration with the Depository Trust & Clearing Corporation (DTCC).
The controversy began when DTCC and the Stellar Development Foundation announced plans to tokenize DTC-custodied assets on Stellar by the first half of 2027. While many in crypto and traditional finance welcomed the news, critics challenged Stellar’s blockchain architecture.
Crypto commentator Omid Malekan called Stellar “not a legitimate blockchain,” arguing it lacks economic security. He criticized the Stellar Consensus Protocol (SCP), saying it relies on trusted validator relationships rather than open economic competition.
Stellar developer Garand Tyson responded sarcastically. He noted that Stellar validators are publicly known, cannot extract MEV, cannot reorder transactions, and depend on community trust instead of token-based incentives.
Hoskinson Steps Into the Debate
Hoskinson questioned the hostility toward Stellar. He called it a “perfectly legitimate technology” and suggested that not all blockchain systems need the same model to be valid.
“Did Stellar kill this guy’s dog? It’s perfectly legitimate technology,” Hoskinson wrote on X (formerly Twitter).
His defense is not new. Hoskinson has maintained a respectful relationship with Stellar and its founder, Jed McCaleb, for years. In 2024, he revealed he had spoken with McCaleb and called the Stellar team “good people.” He also noted Stellar participates in several industry initiatives alongside Cardano.
A History of Support
Hoskinson’s positive view of Stellar goes back at least to 2017, when he said he wanted the ecosystem to succeed. He also praised the Stellar whitepaper as interesting and worth studying.
More recently, in July 2025, Hoskinson congratulated Stellar’s XLM token and Hedera after both saw major rallies. XLM surged over 100% to $0.5194 within weeks. Hoskinson said the rally proved both ecosystems had survived tough market cycles.
Since then, XLM has dropped along with the broader crypto market, now trading at $0.1702. Despite the downturn, the token gained 15.59% in the past 24 hours, while most large cryptocurrencies stayed in the red.
