# Grayscale Stellar Lumens Trust (XLM)

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Grayscale Stellar Lumens Trust (XLM)).

## Overview

Grayscale Stellar Lumens Trust (XLM) is a Delaware statutory trust that holds Stellar Lumens and issues shares designed to give investors economic exposure to XLM without directly owning the token. The trust is passive, has no operating employees, and its shares trade on OTCQX under the ticker GXLM. Its value is driven by the market price and liquidity of XLM, less trust expenses and liabilities.

## Products & services

• Passive investment exposure to Stellar Lumens (XLM)
• Creation baskets issued in exchange for XLM deposits
• OTCQX-traded shares (GXLM)
• Custodial holding of XLM through the trust structure

- **Trust shares** (100%) — Common shares representing fractional beneficial interests in the trust and its XLM holdings.
- **Digital asset custody** (0%) — Holding Stellar Lumens in custody through the trust structure and its custodian arrangements.
- **Creation and redemption mechanism** (0%) — Issuance of creation baskets against XLM deposits and, when available, redemptions of shares for XLM.

- Passive investment exposure to Stellar Lumens (XLM)
- Creation baskets issued in exchange for XLM deposits
- OTCQX-traded shares (GXLM)
- Custodial holding of XLM through the trust structure

## Customers

The trust’s investors are primarily accredited investors and market participants seeking a regulated, exchange-traded way to gain exposure to XLM. Secondary market buyers include traders and allocators using OTCQX liquidity rather than direct token ownership. The trust does not sell to end users of Stellar; it serves investors who want price exposure to the asset.

- **Accredited investors** (primary) — Buy shares in creation transactions to obtain indirect exposure to XLM through a securities wrapper.
- **Secondary market traders** (primary) — Trade GXLM on OTCQX for short-term exposure, arbitrage, or liquidity access.
- **Institutional allocators** (secondary) — Use the trust as a portfolio instrument for digital asset exposure without direct custody.

- Accredited investors seeking XLM exposure through a trust wrapper
- Secondary market traders buying GXLM on OTCQX
- Institutions using the product for portfolio allocation or hedging
- Investors preferring custody and operational simplicity over direct token ownership

## Geography

The trust is organized in Delaware and operates from the United States, with shares quoted on OTCQX in the U.S. market. Its economic exposure is global because XLM is a decentralized digital asset traded on international platforms, but the trust itself is U.S.-based and regulated through U.S. securities and tax structures. No country-level revenue disclosure is provided because the trust does not operate a conventional geographic sales business.

- Delaware statutory trust organized in the United States
- Shares trade on OTCQX in the U.S. market
- XLM pricing is tied to global digital asset trading platforms
- Operational exposure is U.S.-centric, but token markets are global

## Strategy

The trust’s strategy is to hold XLM passively and provide investors with a convenient, cost-effective vehicle for exposure to the token’s market value. It relies on creation baskets, fair-value accounting, and principal-market pricing rather than active trading or leverage. The trust also monitors the principal market annually and updates its reference rate methodology when needed.

- **Keep share value aligned with XLM holdings** (short-term) — The product’s appeal depends on tracking the token’s market value as closely as possible.
- **Maintain operational simplicity** (medium-term) — A passive trust structure reduces complexity and keeps the product focused on exposure, not active management.
- **Support market access and liquidity** (medium-term) — Secondary market trading quality affects premiums/discounts and investor adoption.

- Maintain passive exposure to XLM rather than active management
- Use creation baskets to keep shares linked to underlying token holdings
- Price NAV using the principal market and CoinDesk reference rates
- Preserve a simple structure with no leverage or derivatives
- Monitor market liquidity and principal-market changes annually

## Risks

The trust is exposed to XLM price volatility, liquidity changes, and the possibility that shares trade at persistent premiums or discounts to NAV. Because the trust depends on the Stellar Network and broader digital asset acceptance, protocol flaws, regulatory actions, or banking/service-provider restrictions could materially reduce demand for XLM. The trust also faces custody, valuation, and market-structure risks typical of digital asset vehicles.

- **XLM market price volatility** [high] — The trust’s value is a direct function of the market price of XLM held in custody.
- **Premium/discount to NAV** [medium] — Shares may trade away from underlying value because OTCQX liquidity and digital-asset market hours do not always match.
- **Protocol or cryptography failure** [high] — A flaw in the Stellar Network or its cryptography could impair confidence, usability, or asset security.
- **Regulatory and banking access restrictions** [high] — AML, sanctions, or policy concerns can cause banks, custodians, or trading platforms to limit support for XLM.

- XLM price volatility directly drives trust value and share pricing
- Shares can trade at premiums or discounts to NAV
- Protocol flaws or cryptographic failures could impair XLM value
- AML/sanctions concerns could restrict service-provider support
- Regulatory changes could reduce acceptance of digital assets

## Accounting

The trust accounts for XLM at fair value and records changes in unrealized appreciation or depreciation through earnings, so reported results can swing sharply with token prices. Creations are recorded on trade date, and realized gains or losses can arise from specific-identification accounting and sponsor-fee settlements paid in XLM. Because the trust uses a principal-market approach and periodically reassesses that market, valuation judgments can materially affect NAV and reported performance.

- **Fair value measurement of XLM** — Large swings in unrealized gains/losses
- **Principal market determination** — Can change reported NAV per share
- **Creation transaction timing** — Affects period-end holdings and comparability
- **Sponsor fee settled in XLM** — Impacts realized results and asset balances

- Fair value accounting makes earnings highly sensitive to XLM price moves
- Unrealized gains/losses flow through net change in investments
- Creations are recorded on trade date, affecting timing of reported holdings
- Specific identification affects realized gain/loss calculations
- Principal-market selection affects NAV and valuation inputs

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*Last updated: 2026-04-28T20:12:17.089749+00:00*