A Columbia Business School professor has raised doubts about Ethereum’s role as a foundation for global finance. Austin Campbell, an adjunct professor, argues that Stellar (XLM) is a better fit. His comments follow a major announcement from the U.S. Depository Trust & Clearing Corporation, or DTCC, to tokenize its custodial assets on the Stellar blockchain.
Why Stellar Over Ethereum?
In a series of posts on X, formerly Twitter, Campbell explained that the DTCC’s choice wasn’t random. He said Ethereum’s focus on censorship resistance makes it hard to use in regulated finance. “Censorship-resistant money and the mainstream global financial system are fundamentally incompatible,” he wrote. Decentralization comes with real costs, he added, which often outweigh benefits for institutions.
Stellar, on the other hand, offers open access but uses a trust-based consensus algorithm. This lets financial institutions pick their transaction partners directly. That’s critical for compliance and risk management. The professor’s view adds a fresh layer to debates about tokenized real-world assets, or RWAs.
Control Features in a Public Ledger
Campbell highlighted that Stellar’s Layer 1 protocol includes control functions big financial entities need. These include freezing assets, seizing funds, and keeping whitelists of approved participants. To become mainstream infrastructure, he argued, a ledger must be open but also able to block bad actors. This pragmatic approach differs sharply from the ethos of many public blockchains that push for full decentralization.
The DTCC, a key backbone of U.S. capital markets, recently said it would tokenize custodial assets on Stellar, with a target launch in the first half of 2027. This choice by a central market player gives weight to Campbell’s argument that Stellar’s design is more practical for institutions.
Implications for the Crypto Market
This development may signal a shift in how big financial institutions view blockchain tech. The preference for a network that balances openness with control suggests the future of tokenized assets might not belong to the most decentralized networks. Instead, it could favor those that bridge blockchain innovation and regulatory reality.
For Ethereum, long seen as the default for decentralized finance, Campbell’s critique is a significant challenge. It raises questions about whether its core design principles are a strength or a liability when courting institutional capital. The debate between idealistic decentralization and practical compliance is now unfolding in real time with major players. Austin Campbell’s analysis, grounded in the DTCC’s decision, offers a clear argument for why networks like Stellar may be better for the future of global finance. The coming years will show if the market agrees.
