Stellar Advances Smart Contract Infrastructure with Space and Time Integration and Protocol 25 Upgrade

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Stellar Connects with Data Platform for Enhanced Smart Contracts

Stellar has made a move that could change how developers build financial tools on its network. They’ve partnered with Space and Time, a data platform that specializes in blockchain information. This integration brings indexed blockchain data directly into the Stellar ecosystem.

What does that mean in practice? Well, developers working on payments, asset issuance, and other on-chain activities now have access to verified, reliable information. This matters because many smart contracts struggle with data limitations. They can’t easily use older records or external sources in a trustworthy way.

The Data Problem in Blockchain Finance

Here’s the thing about smart contracts – they’re often isolated. They operate within their own blockchain state but can’t reach out to verified external information. This creates real problems for things like tokenized assets and stablecoins. If a financial program depends on accurate inputs but can’t get them, there’s risk involved.

Existing data services haven’t quite solved this either. Some gather historical records, others supply external feeds, but the tools feel fragmented. They can be slow or incomplete. Stellar needed something more unified, something that could actually support the kind of financial access they’re trying to build.

Space and Time now collects Stellar data and stores it in a verified format that stays current. Developers can examine wallet behavior, track token activity, and build applications that actually work with real-world information. It’s not perfect, but it’s a step forward.

Protocol 25 Upgrade Coming in 2026

Separately, Stellar has announced Protocol 25, which they’re calling Stellar X Ray. The testnet vote is scheduled for January 7, 2026, with mainnet voting on January 22, 2026. This upgrade adds zero-knowledge cryptography features directly into the network.

There are two main components here. First is BN254, an elliptic curve that allows for verifying zk-SNARK proofs. Second is the Poseidon hash function family, which should help lower costs and improve performance for privacy-preserving applications. These features create opportunities for confidential transfers and selective disclosure tools while keeping everything auditable.

Testing Regulated Digital Currency

Stellar is also exploring regulated digital currency through a joint pilot with U.S. Bank and PwC. The project, announced back in November, tests stablecoin issuance on Stellar’s network. The focus seems to be on how tokenized currencies can meet regulatory requirements while still benefiting from blockchain technology.

As for the market side, Stellar’s XLM token is trading around $0.23 at the moment, showing a drop of about 3.72% in the past day. Technical analyst Ali Martinez suggests the price could potentially return to $0.34, depending on market behavior. His analysis points to historical patterns that previously led to rebounds from similar levels.

Taken together, these developments show Stellar working on multiple fronts. The Space and Time integration addresses practical data needs for developers, while Protocol 25 looks toward future privacy features. The stablecoin pilot, meanwhile, explores how blockchain can fit within existing financial regulations. It’s a mix of immediate improvements and longer-term exploration.