Polygon Labs has published details of multiple security vulnerabilities that could have threatened the reliability of its Proof-of-Stake (PoS) network—after fixing the issues via two recent hard forks and then disclosing the underlying risks.

According to a Thursday disclosure posted by Polygon Labs’ Validators Support Team, the flaws impacted the network’s Bor and Heimdall clients and ranged from denial-of-service (DoS) vectors to bugs that could interfere with validator and checkpoint-related processing.

Key takeaways

• Polygon disclosed security issues affecting both Bor and Heimdall clients, including DoS risks and validator resource exhaustion.
• The fixes were delivered through two hard forks—Austin for Bor and Kyoto for Heimdall—and were tested before activation on mainnet.
• Polygon said it has seen no evidence of the vulnerabilities being exploited on mainnet.
• After the hard fork activation heights, nodes running older client versions will fall out of consensus and must upgrade to rejoin the canonical chain.
• Upgrades are already live on mainnet: Bor v2.10.0 for PoS nodes and Heimdall v0.11.0 for validators and full nodes.

What Polygon disclosed: Bor and Heimdall risks

In its security release, Polygon described vulnerabilities that could have disrupted network operation by increasing the amount of work validators and other components had to perform, potentially leading to slowdowns or instability.

The disclosure states that Heimdall carried the most severe issue. Polygon said that a specially crafted transaction could compel validators to carry out excessive processing work, creating a realistic possibility of network disruption.

For Bor, Polygon’s disclosure highlights two separate denial-of-service risks addressed by the Austin hard fork. While the release does not expand on every implementation detail in the summary provided, it characterizes the potential impact as slowing block processing or causing nodes to crash—outcomes that can degrade throughput and availability in a validator-driven system.

Alongside these issues, Polygon also pointed to flaws tied to checkpoint and milestone processing. These components are important in PoS systems that must consistently advance state and maintain coordination across epochs and consensus-critical milestones. Errors in those flows can create cascading failures if left unpatched.

How Polygon rolled out the fixes

Polygon said the vulnerabilities were addressed through two hard forks: Austin for the Bor client and Kyoto for Heimdall. The company added that the updates were deployed privately first, with testing before activation on mainnet, and that the details were made public only after the network upgrades were already in place.

Crucially for operators, Polygon indicated that none of the disclosed vulnerabilities had been observed being exploited on mainnet. The report frames the disclosure as a proactive measure—Polygon says it pushed the fixes before publishing the full technical details.

Upgrade requirements: staying in consensus after activation

Polygon also made the practical implications explicit: nodes that continue running older versions of either client past the hard fork activation heights will no longer be in consensus with the canonical network.

To avoid being cut off from the main chain, Polygon said that:

• Bor v2.10.0 is required for all Polygon PoS nodes.
• Heimdall v0.11.0 is required for validators and full nodes.

Polygon further stated that both upgrades are already active on mainnet, meaning operators who haven’t updated need to act promptly to ensure their infrastructure remains compatible with the post-fork network rules.

Why this matters for PoS operators and users

Hard forks can feel disruptive even when they’re planned, but this disclosure underscores a different dimension of PoS security: availability and resource pressure are not theoretical. Heimdall’s described transaction-based forcing of excessive validator work highlights how adversaries can sometimes target compute limits rather than attempting to directly rewrite or steal consensus control.

Similarly, Bor DoS risks—ranging from block processing slowdowns to potential node crashes—suggest that operational stability depends on more than just validator correctness. A network can degrade even if the core consensus mechanism remains intact, simply by overwhelming nodes with workload or triggering instability.

For end users, these incidents mostly affect the system indirectly through reliability: delays, degraded performance, or node downtime can reduce how smoothly transactions propagate and are confirmed. For validators and infrastructure providers, the key takeaway is more immediate: compatibility after hard fork activation is mandatory, and the disclosed issues increase the importance of keeping client software current.

Token performance remains separate from the engineering update

At the time of writing, Polygon’s native token, POL—formerly known as MATIC—was trading around $0.10, down about 4% over the past week but up 44% over the past month and 2.3% year to date, based on CoinGecko data.

Readers should watch next for validator/operator confirmations that post-fork upgrades are stable across the network—especially because Polygon’s disclosure emphasizes resource exhaustion and processing-path bugs that, even if not exploited, are the kinds of issues that can surface as infrastructure strain under load.

Polygon has disclosed several previously private security vulnerabilities that could have disrupted its proof-of-stake network, after deploying fixes through two recent hard forks.

The vulnerabilities affected Polygon’s Bor and Heimdall clients and included denial-of-service risks, validator resource exhaustion and flaws affecting checkpoint and milestone processing, according to a Thursday disclosure from Polygon Labs’ Validators Support Team. 

Polygon said the flaws were fixed through the Austin and Kyoto hard forks, which were deployed privately and tested before being activated on mainnet and publicly disclosed.

The most severe issue involved Heimdall, where a specially crafted transaction could force validators to perform excessive processing work, potentially disrupting the network. The Austin hard fork separately addressed two denial-of-service risks in Bor that could have slowed block processing or caused nodes to crash.

None of the vulnerabilities were observed being exploited on mainnet, according to Polygon, which said the fixes were deployed proactively before details were made public.

Nodes running older versions of either client past the hard fork activation heights have already fallen out of consensus and must upgrade to rejoin the canonical network, according to the disclosure. Bor v2.10.0 is required for all Polygon PoS nodes, while Heimdall v0.11.0 is required for validators and full nodes, with both upgrades already active on mainnet.

POL, Polygon’s native token formerly known as MATIC, was trading around $0.10 at the time of writing, down about 4% over the past week but up 44% over the past month and 2.3% year to date, according to CoinGecko data.

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Tokenized real-world assets (RWAs) on the Stellar blockchain have surged to nearly $4 billion in 2026, according to a Dune Analytics dashboard maintained by Stellar. The jump—about 360% over the year—marks a significant acceleration in how major issuers are positioning tokenized debt and government-linked instruments on public chains.

As of Aug. 29, Stellar’s RWA market cap stood at $3.996 billion, spanning US Treasurys, private and public credit, non-US government debt, and other tokenized asset classes. However, the ecosystem’s growth has not been mirrored by Stellar’s native token: XLM is down roughly 11% year to date, trading near $0.18, according to CoinGecko data.

Key takeaways

• Stellar’s tokenized RWA market cap reached $3.996 billion as of Aug. 29, nearly $4 billion after a ~360% rise in 2026, per a Dune Analytics dashboard.
• RWA liquidity and exposure on Stellar remain concentrated: Spiko led with about $1.55 billion, followed by Realiz, Tradable, Franklin Templeton, and Ondo.
• Non-US government debt is gaining traction, with Stellar holding roughly $490 million as of Aug. 20, including tokenized Mexican CETES and Brazilian bonds issued via Etherfuse.
• Institutional integrations are a major driver, including planned DTCC connectivity that could bring tokenized assets to Stellar in the first half of 2027.
• Stellar’s RWA and payment-related expansion is progressing even as XLM underperforms on the year, suggesting broader tokenization momentum isn’t automatically translating into token price strength.

RWA market cap surges toward $4B on Stellar

The Dune Analytics dashboard indicates Stellar’s RWA value grew from $868.8 million at the end of the prior year to nearly $4 billion by late August 2026. The composition reflects the typical early pattern for RWA growth on public networks: a mix of government-linked instruments, credit products, and a smaller set of highly visible issuers.

The market remains skewed toward a handful of participants. As of Aug. 27, Spiko accounted for $1.55 billion of the total RWA value on Stellar, with Realiz at $559 million, Tradable at $548 million, Franklin Templeton at $546 million, and Ondo at $535 million. For investors and developers, the concentration matters: it can accelerate liquidity and credibility when adoption expands, but it also means momentum may be sensitive to changes at a small number of institutions.

Stellar’s overall RWA positioning also ties into broader debt tokenization themes, where on-chain issuance can streamline settlement, distribution, and compliance controls—especially when established financial players already have distribution and custody relationships.

Non-US government debt becomes a noticeable share

While tokenized Treasurys often attract the most attention, Stellar’s data highlights momentum in non-US government instruments. The Stellar Development Foundation pointed to RWA.xyz data, saying Stellar held about $490 million in non-US government debt as of Aug. 20.

That figure includes tokenized Mexican CETES and Brazilian government bonds issued via Etherfuse. The shift is important because it expands the range of sovereign-linked assets accessible on-chain and can broaden demand beyond US-centric portfolios. It also indicates that tokenization pipelines on Stellar are extending into markets where local instruments are packaged for global access.

For participants tracking adoption, the key question is whether these categories keep growing at a similar pace—and whether additional sovereign and quasi-sovereign issuances follow the same onboarding patterns.

Institutional integrations and payments push the pipeline

The RWA expansion aligns with a series of institutional moves aimed at bringing regulated tokenized products onto Stellar infrastructure. One notable thread is DTCC’s plan to connect its tokenization service to Stellar. In May, DTCC announced plans to make tokenized assets available on Stellar in the first half of 2027, with DTC-tokenized assets expected to follow that timeline. Earlier reporting associated the potential expansion with tokenized US Treasurys and broader exposure such as major index ETFs and Russell 1000-related assets.

Another step toward scaling credit offerings came in July. Tokenization platform Tradable said it plans to bring up to $1 billion in private credit assets to Stellar. The integration is designed to support compliance, investor onboarding, and asset lifecycle management, building on Tradable’s already-tokenized private credit of $1.7 billion across nearly 30 positions. That matters because credit products often require more operational work than simpler treasury-style instruments; faster lifecycle handling can reduce friction for issuers and improve the consistency of the user experience.

Stellar’s growth story also extends beyond tokenized securities into regulated dollar remittance and payment rails. In June, MoneyGram launched MGUSD, its dollar stablecoin, on Stellar. The launch allows users to hold dollar-denominated balances and move funds through MoneyGram’s global payments network, adding an everyday utility layer alongside RWA issuance.

MGUSD joins roughly $438 million in reserve-verified stablecoins already issued on Stellar, according to the same Dune dashboard. Taken together, RWA issuance and stablecoin payment capacity can reinforce each other: stablecoin balances can help with settlement and liquidity, while on-chain RWAs can create additional demand for compliant dollar exposure.

Growth in RWAs doesn’t automatically lift XLM

Despite Stellar’s rapid expansion in tokenized assets, the network’s native token has struggled to keep pace. CoinGecko data shows XLM down about 11% year to date, trading near $0.18. This divergence is a reminder that blockchain ecosystem metrics and token performance do not always move together in the short term.

Several dynamics can explain the gap: token price depends on broader market conditions, risk appetite, liquidity, and speculative flows, while RWA growth is often driven by institutional issuance schedules and product onboarding timelines. In other words, increased RWA capitalization is not necessarily the same as increased immediate demand for XLM.

What to watch next is whether upcoming institutional integrations—particularly DTCC’s planned connectivity—lead to faster onboarding of high-profile tokenized products, and whether stablecoin and payment usage continues to expand in parallel with the RWA balance sheet growth.

For readers tracking Stellar, the near-term indicators to monitor are category-level growth within the RWA dashboard (especially non-US government debt), the rollout pace for major institutional integrations expected in 2027, and whether tokenization-driven activity translates into deeper on-chain demand across liquidity and payment flows.

The value of tokenized real-world assets (RWA) on Stellar has climbed roughly 360% in 2026 to nearly $4 billion, up from $868.8 million at the end of last year, according to a Dune Analytics dashboard maintained by Stellar.

The network’s RWA market cap stood at $3.996 billion as of Aug. 29, spread across US Treasurys, private and public credit, non-US government debt and other tokenized asset classes.

The market is concentrated among a handful of issuers. Spiko accounted for $1.55 billion of Stellar’s RWA value as of Aug. 27, followed by Realiz at $559 million, Tradable at $548 million, Franklin Templeton at $546 million and Ondo at $535 million.

Stellar’s RWA market cap has surged in 2026. Source: Dune Analytics/Stellar

Stellar has gained ground in non-US government debt. Citing RWA.xyz data, the Stellar Development Foundation said the network held about $490 million in the asset class as of Aug. 20, including tokenized Mexican CETES and Brazilian government bonds issued through Etherfuse.

Source: StellarOrg

Despite the growth in RWAs, the blockchain’s native XLM token is down about 11% year to date, trading near $0.18, according to CoinGecko data. 

Related: Coinbase tokenized stocks go live on Base with Chainlink price feeds

Institutional adoption drives Stellar’s RWA growth

The expansion comes as financial institutions and tokenization platforms deepen their use of the network.

In May, the Depository Trust & Clearing Corporation (DTCC) announced plans to connect its tokenization service to Stellar, with DTC-tokenized assets expected to become available on the network in the first half of 2027. The integration could eventually support tokenized US Treasurys, major index ETFs and stocks in the Russell 1000.

That institutional push continued in July, when tokenization platform Tradable announced plans to bring up to $1 billion in private credit assets to Stellar. The integration is designed to support compliance, investor onboarding and asset lifecycle management, building on $1.7 billion in private credit that Tradable has already tokenized across nearly 30 positions.

Stellar has also expanded its role in digital payments. MoneyGram launched its MGUSD dollar stablecoin on the network in June, allowing users to hold dollar-denominated balances and move funds through its global payments network.

MGUSD joins roughly $438 million in reserve-verified stablecoins currently issued on Stellar, according to the Dune dashboard.

Stellar’s RWA and stablecoin market caps. Source: Dune Analytics/Stellar

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Tokenized stock markets have accelerated sharply over the past month, according to onchain analytics from RWA.xyz. Over the last 30 days, monthly transfer volume for tokenized equities rose by more than 415% to $29.5 billion, signaling that activity is moving beyond early experimentation.

RWA.xyz data also shows the ecosystem is widening: monthly active addresses jumped by more than 209% to about 1.3 million, and the number of tokenized stock holders increased 167% to 2.36 million. At the same time, the total value of tokenized stocks distributed onchain edged up to $2.54 billion—up 1.45% over 30 days and roughly 637% compared with a year earlier.

Key takeaways

• Monthly tokenized stock transfers rose more than 415% to $29.5 billion, per RWA.xyz.
• Monthly active addresses climbed over 209% to around 1.3 million, while holders grew 167% to 2.36 million.
• Total distributed tokenized stock value reached $2.54 billion, about 637% higher than a year ago.
• Ondo, Kraken, and Binance collectively accounted for roughly 81% of distributed value in the RWA.xyz dataset.
• New product launches from major crypto platforms are expanding how tokenized stocks can be traded, held, and used in DeFi-style workflows.

Activity surges across transfers, holders, and usage

The growth figures from RWA.xyz point to broad-based expansion rather than a single spike. Transfer volume is up dramatically, but that increase lines up with other engagement metrics—particularly active addresses and holder count—suggesting more wallets are participating and not just cycling through limited liquidity.

Distributed value, while smaller in percentage terms over 30 days (+1.45%), is still notable in absolute terms at $2.54 billion. Importantly, the year-over-year change indicates the market’s baseline has risen substantially: distributed tokenized stocks are up roughly 637% from $344 million a year ago, implying that the current acceleration is occurring on top of already-growing distribution.

Among individual offerings tracked on RWA.xyz, Securitize Corp. leads with about $163 million in distributed tokenized stock value. Strategy PP Variable xStock follows at $136 million, and an Ondo-tokenized version of Circle Internet Group sits around $109 million.

Big platforms dominate distributed tokenized stock value

On the platform side, the distribution is concentrated. Ondo leads with $842.8 million in distributed value, while Kraken’s xStocks account for $609.3 million and Binance’s bStocks come in at $599.9 million. Together, those three platforms represent roughly 81% of the market in the RWA.xyz dataset—underscoring that much of tokenized equities’ liquidity and distribution still flows through a handful of issuers and distribution rails.

This matters for participants because platform concentration can shape token availability, custody and wallet experiences, and integration depth with other onchain services. If activity is growing rapidly, a large share of that growth is likely benefiting the dominant platforms first—especially those that already have the widest distribution and the most straightforward pathways for token holders to move assets onchain.

Why August’s product momentum is pulling tokenized stocks deeper onchain

The latest surge aligns with a broader pattern: crypto platforms are increasingly packaging tokenized equities into onchain trading and portfolio workflows, and expanding the ways those assets can be used beyond simple buy-and-hold.

On Aug. 24, Coinbase’s tokenized US stocks launched on Base, enabling eligible non-US users to trade the assets around the clock and use them across decentralized finance applications. The B20 token set includes major companies such as Nvidia, Apple, Meta, and Alphabet, and the assets can be held in self-custody wallets—an important feature for onchain utility because it allows tokens to interact with broader wallet-based infrastructure.

A day later, Bitwise introduced automated portfolios built from Coinbase’s tokenized stocks. The offering is designed for eligible non-US investors who want exposure to preset strategies while keeping the underlying assets in their own wallets. The initial portfolios target themes such as the “Magnificent Seven,” robotics and artificial intelligence.

Other exchanges and DeFi-adjacent products have expanded similarly. In July, Bybit added tokenized shares—such as Nvidia, Apple, and Tesla—as collateral for margin loans. Meanwhile, Arcus, a Robinhood-backed decentralized exchange, launched more than 95 stock tokens and perpetual markets on Robinhood Chain, demonstrating how tokenized equities are increasingly being treated as instruments for active trading rather than standalone blockchain assets.

RWA.xyz’s activity jump appears to reflect these shifts. When tokenized equities become easier to acquire across major ecosystems, and when they can be used in more onchain-compatible ways (for example, for collateral or within structured portfolios), wallet adoption typically follows. Higher active address counts and holder growth are consistent with that expansion of onchain utility.

What to watch next as tokenized equities integrate with crypto rails

The data shows a sector that is getting more participants and more transaction volume, but it also highlights how concentrated distribution remains among a small set of major platforms. Going forward, investors and builders should watch whether activity growth continues to translate into sustained distributed value, and whether new integrations broaden beyond the current top issuers—especially as tokenized stocks are increasingly positioned for trading, portfolio automation, and collateralized lending on mainstream crypto networks.

Tokenized stock activity surged over the past 30 days, with monthly transfer volume climbing more than 415% to $29.5 billion, according to data from RWA.xyz.

Monthly active addresses rose more than 209% to around 1.3 million, while the number of tokenized stock holders climbed 167% to 2.36 million over the same period. The total value of tokenized stocks distributed onchain also rose 1.45% over the past 30 days to $2.54 billion, up roughly 637% from $344 million a year ago.

Tokenized stock activity accelerated in August. Source: RWA.xyz

Securitize Corp. was the largest individual tokenized stock tracked by RWA.xyz at about $163 million, followed by Strategy PP Variable xStock at $136 million and an Ondo-tokenized version of Circle Internet Group at $109 million.

By platform, Ondo led with $842.8 million in distributed value, followed by Kraken’s xStocks at $609.3 million and Binance’s bStocks at $599.9 million. Together, the three accounted for roughly 81% of the market.

Related: Arcus launches tokenized perp positions on Robinhood Chain

Tokenized equities move deeper into crypto platforms

The surge in activity comes as crypto platforms introduce new ways for investors to trade, hold and use tokenized equities onchain.

On Aug. 24, Coinbase’s tokenized US stocks went live on Base, allowing eligible non-US users to trade the assets around the clock and use them across decentralized finance applications. The B20 tokens include companies such as Nvidia, Apple, Meta and Alphabet and can be held in self-custody wallets.

Source: Base

A day later, Bitwise launched automated portfolios built from Coinbase’s tokenized stocks, allowing eligible non-US investors to follow preset strategies while keeping the underlying assets in their own wallets. The initial portfolios target the “Magnificent Seven,” robotics and artificial intelligence sectors.

Other platforms have also expanded how tokenized stocks can be used. In July, Bybit added tokenized shares of Nvidia, Apple, Tesla and other US companies as collateral for margin loans, while Robinhood-backed DEX Arcus launched more than 95 stock tokens and perpetual markets on Robinhood Chain.

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