GXLM

As of September 30, 2025, each Share represented approximately 84.3255 XLM.
Furthermore, the value of the Trust’s assets will be reported each day on www.grayscale.com/funds/grayscale-stellar-lumens-trust/. • Minimal Credit Risk .
This contrasts with the other financial products such as CoinShares exchange-traded notes, TeraExchange swaps, futures, and options traded on the Chicago Mercantile Exchange (“CME”) and the Intercontinental Exchange (“ICE”) through which investors gain exposure to digital assets through the use of derivatives that are subject to counterparty and credit risks. • Safekeeping System .
The Trust may engage in any lawful activity necessary or desirable in order to facilitate shareholders’ access to Incidental Rights or IR Virtual Currency, provided that such activities do not conflict with the terms of the Trust Agreement.
See “—Incidental Rights and IR Virtual Currency” for more information.
Secondary Market Trading While the Trust’s investment objective is for the value of the Shares (based on XLM per Share) to reflect the value of the XLM held by the Trust, determined by reference to the Index Price, less the Trust’s expenses and other liabilities, the Shares may trade in the Secondary Market on OTCQX (or on another Secondary Market in the future) at prices that are lower or higher than the NAV per Share.
While the Shares trade on OTCQX from 6:00 a.m. until 5:00 p.m., New York time, liquidity in the Digital Asset Markets may fluctuate depending upon the volume and availability of larger Digital Asset Trading Platforms.
Overview of the Stellar Industry and Market Stellar is an open-source, decentralized platform for exchanging value.
Anyone can join and start using the Stellar Network.
However, unlike other distributed ledger networks like the Bitcoin Network, which operates on a fully permissionless blockchain, the Stellar Network uses the Stellar Consensus Protocol (“SCP”), a federated Byzantine agreement mechanism in which validators select sets of other validators (“quorum slices”).
Overlapping slices form network-wide quorums that reach consensus every few seconds.
Network membership is open; there are no protocol-level monetary rewards for validators.
“Anchors” provide users with on- and off-ramps to traditional financial systems, and anchors are organizations like banks, savings institutions, farmers’ co-ops, central banks, and remittance companies.
Under the current implementation of Soroban, smart contract operations are executed on the Stellar Network in exchange for payment of fees in XLM, which are burned, or removed from circulation, by the protocol.
The Stellar protocol is supported by the Stellar Development Foundation (“SDF”), a nonprofit which was founded in 2014 by Joyce Kim and by Jed McCaleb, founder of Mt.
McCaleb co-founded both SDF and Interstellar, Interstellar has no direct influence over Stellar or XLM.
First, XLM plays a small anti-spam role.
XLM is needed for transaction fees and minimum balances on accounts on the Stellar Network in order to prevent people from overwhelming the network and to aid in transaction prioritization.
XLM serves as a security measure that mitigates DoS attacks that attempt to generate large numbers of transactions or consume large amounts of space in the Stellar Ledger.
Similarly, the Stellar Network requires all accounts to hold a minimum balance of 1 XLM (approximately $0.37 as of September 30, 2025).
For additional information see “—Creation of New XLM.” XLM Spot and Futures Markets XLM spot markets generally allow investors to open accounts with digital asset exchanges and then buy or sell XLM via websites or mobile applications.
Prices for XLM trades on these markets are typically publicly reported.
Investors wishing to trade XLM on a digital asset platform must deposit an accepted government-issued currency or previously acquired digital assets into their platform account before they can purchase or sell XLM.
This process of setting up an account with a trading platform and executing trades is separate from, and should not be confused with, the process of transferring XLM between addresses on the Stellar Ledger.
The latter involves activities directly on the Stellar Network, while trading on digital platforms occurs within the exchange’s order book.
The platform generally records an investor’s XLM ownership in its internal books, not on the Stellar Ledger.
XLM is typically not transferred to the investor’s personal wallet unless they request a withdrawal to an off-platform XLM address.
Outside of spot markets, XLM can also be traded over-the-counter (OTC).
The OTC market is predominantly institutional, with participants including firms that provide two-sided liquidity for XLM, investment managers, proprietary trading firms, high-net-worth individuals, entities holding significant amounts of XLM, and family offices.
The OTC market offers a flexible environment in terms of quotes, pricing, and quantity, though it often involves large quantities of XLM.
There is no formal structure to the OTC market, nor an open meeting place for transactions.
Parties involved in OTC trades typically agree on the price—often by phone or email—before one party initiates the transfer by sending XLM to the buyer’s XLM address.
The buyer would then transfer the agreed-upon currency to the seller’s bank account.
OTC trades are sometimes hedged and eventually settled on digital asset trading platforms.
In addition, XLM futures and options trading occurs on exchanges in the United States regulated by the CFTC.
The market for CFTC-regulated trading of XLM derivatives has developed substantially.
As of September 2, 2025, CFTC regulated XLM futures represented approximately $358.2 million in notional trading volume on Coinbase Derivatives, LLC (“Coinbase Derivatives”), a designated contract market (“DCM”) registered with the CFTC, representing around $292.5 million in open interest.
XLM futures on Coinbase Derivatives traded around $1.8 million per trading day as of September 2, 2025 and represented around $1.8 million in open interest per trading day.
Through the common membership of NYSE Arca and the Coinbase Derivatives XLM futures market in the Intermarket Surveillance Group (“ISG”), NYSE Arca may obtain information regarding trading in the Shares and listed XLM derivatives from the Coinbase Derivatives XLM futures market via the ISG and from other exchanges who are members or affiliates of the ISG.
Such an arrangement with the ISG and the Coinbase Derivatives XLM futures market allows for the surveillance of XLM futures market conditions and price movements on a real-time and ongoing basis in order to detect and prevent price distortions, including price distortions caused by manipulative efforts.

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Gone since FY2024

As of September 30, 2024, each Share represented approximately 86.4588 XLM.
Furthermore, the value of the Trust’s assets will be reported each day on www.grayscale.com/crypto-products/grayscale-stellar-lumens-trust/. • Minimal Credit Risk .
This contrasts with the other financial products such as CoinShares exchange-traded notes, TeraExchange swaps and futures traded on the Chicago Mercantile Exchange (“CME”) and the Intercontinental Exchange (“ICE”) through which investors gain exposure to digital assets through the use of derivatives that are subject to counterparty and credit risks. • Safekeeping System .
In addition, the Trust may engage in any lawful activity necessary or desirable in order to facilitate shareholders’ access to Incidental Rights or IR Virtual Currency, provided that such activities do not conflict with the terms of the Trust Agreement.
Secondary Market Trading While the Trust’s investment objective is for the value of the Shares (based on XLM per Share) to reflect the value of XLM held by the Trust, determined by reference to the Index Price, less the Trust’s expenses and other liabilities, the Shares may trade in the Secondary Market on OTCQX (or on another Secondary Market in the future) at prices that are lower or higher than the NAV per Share.
While the Shares are listed and trade on OTCQX from 6:00 a.m. until 5:00 p.m., New York time, liquidity in the Digital Asset Markets may fluctuate depending upon the volume and availability of larger Digital Asset Trading Platforms.
Overview of the XLM Industry and Market Stellar is an open-source, decentralized platform for exchanging money using blockchain technology.
Similar to the decentralized Bitcoin Network, anyone can join and start using the Stellar Network; however unlike the Bitcoin Network, which operates on a fully permissionless blockchain, the Stellar Network is semi-permissioned in that it requires users to maintain a list of trusted validators, known as “anchors”, and permits a user to accept or reject a version of the distributed ledger based on whether it has been verified by a sufficient number of validators on its list.
Most anchors are organizations like banks, savings institutions, farmers’ co-ops, central banks, and remittance companies.
Under the current implementation of Soroban, smart contract operations are executed on the Stellar Network in exchange for payment of XLM.
The Stellar protocol is supported by SDF, a nonprofit which was founded in 2014 by Joyce Kim and by Jed McCaleb, founder of Mt.
McCaleb holds positions in both SDF and Interstellar, Interstellar has no direct influence over Stellar or XLM.
XLM are needed for transaction fees and minimum balances on accounts on the Stellar Network in order to prevent people from overwhelming the network and to aid in transaction prioritization.
XLM serve as a security measure that mitigates DoS attacks that attempt to generate large numbers of transactions or consume large amounts of space in the Stellar Ledger.
Similarly, the Stellar Network requires all accounts to hold a minimum balance of 1 XLM (approximately $0.10 as of September 30, 2024).
For additional information see “—Creation of New XLM.” Similar to XLM, XRP is a digital asset that is used to facilitate cross-currency payments quickly and efficiently.
However, XRP’s only function is to facilitate cross-currency transactions.
Unlike the Stellar Network, the Ripple network does not facilitate the creation of tokenized assets or offer a decentralized exchange platform.
Development using Soroban involves building more complex tools on top of smart contracts, such as decentralized apps (DApps) and organizations that are autonomous, known as decentralized autonomous organizations (DAOs); and entirely new decentralized networks.
For example, a company that distributes charitable donations on behalf of users could hold donated funds in smart contracts that are paid to charities only if the charity satisfies certain pre-defined conditions.
In addition, since every computation on the Stellar Network requires processing power, there is a transaction fee involved with the transfer that is paid by the payor.
Small amounts of XLM were given to each unique individual who signs up through an invitation link.
The Direct Sign-up Program is conducted in rounds and with a phased roll-out to encourage learning and public awareness throughout the distribution process.
Up to $2.0 million in XLM, on a per partner basis, were given to businesses, governments, institutions, or nonprofit organizations that contribute to the growth and adoption of the Stellar Network. • Bitcoin Program : 19% to Bitcoin holders.
Any unclaimed XLM was distributed to SDF for operational expenses and to fund the Stellar Build Challenge. • SDF Operational Fund : 5% reserved for SDF operational expenses.
In addition, XLM supply is capped and no further XLM may be created or distributed.
This allocation is escrowed and unlocks at a rate of 3 billion XLM per year until 2023. • Ecosystem Support : 2 billion XLM from the original Partnership Program will be used for ecosystem support to be allocated as follows: o Infrastructure Grant : 1 billion XLM for network utility. o Currency Support : 1 billion XLM for payment interfaces such as tethers, deposit/withdrawal endpoints and liquidity. • Use-Case Investment : The remaining 10 billion XLM from the original Partnership Program will be used for partners exploring new use cases for XLM to be allocated as follows: o New Products : 2 billion XLM for SDF to build and own new projects on the Stellar protocol. o Stellar Enterprise Fund : 8 billion XLM for SDF to acquire or invest in businesses that have potential for the Stellar ecosystem. • User Acquisition : 6 billion XLM for airdrops to drive awareness and adoption to be allocated as follows: o Marketing Support : 2 billion XLM for marketing, public relations and communications. o In-App Distributions : 4 billion XLM for airdrops in Stellar-built applications and services.
As of the date of this Annual Report, approximately 19.8 billion XLM remained in wallets belonging to SDF.
Consensus and Validation Process The Stellar Network is kept running by distributed servers that process transactions.
A transaction begins when a user’s Stellar Network software signs and transmits transaction information to servers, which relay these candidate transactions throughout the Stellar Network for processing on the Stellar Ledger.
A complete copy of the global Stellar Ledger is hosted on each server that runs the Stellar software.
These servers form the decentralized Stellar Network, allowing the Stellar Ledger to be distributed as widely as possible.
For example, if a user on the Stellar Network wants to send a $5 payment to another user, the majority of servers will have to agree that the sender does in fact own $5 worth of credit on the Stellar Network before they will mark the transaction as valid.
XLM supply is capped and no further XLM may be created or distributed according to the Stellar Protocol.
As of September 30, 2024, approximately 29.6 billion XLM have been distributed and were circulating, while the remaining XLM is held by SDF.
For example, if a third-party developer submits a request to alter the Stellar Network’s source code, SDF’s reviewers must approve the request, after which an SDF maintainer of the Stellar Ledger will implement such request.
Users and servers must accept any changes made to the Stellar Network’s source code by downloading the proposed modifications.
If a modification is accepted by only a percentage of users and validators, a division in the Stellar Network will occur such that one network will run the pre-modification source code and the other network will run the modified source code.
Risk Factors—Risk Factors Related to Digital Assets—A temporary or permanent “fork” or a “clone” could adversely affect the value of the Shares.” Consequently, as a practical matter, a modification to the source code becomes part of the Stellar Network only if accepted by participants collectively having most of the processing power on the Stellar Network.
Digital Asset Trading Platform Public Market Data On each online Digital Asset Trading Platform, XLM is traded with publicly disclosed valuations for each executed trade, measured by one or more fiat currencies such as the U.S. dollar or euro, or by the widely used cryptocurrency Bitcoin.

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