Equities issued on blockchain have grown significantly, marking a rapid expansion in the tokenization of real-world assets. Tokenized equities are the fastest-growing category by holder count, though they represent a smaller portion of the overall market value.
Roughly $2.2 billion of equity exposure has been tokenized on-chain. This figure, while substantial, is a fraction of the global equity market, which exceeds $100 trillion. The growth in tokenized equities suggests increased accessibility for a broader range of investors due to lower minimum investment requirements.
Tokenization of Real-World Assets
A tokenized real-world asset is defined as a claim on a conventional asset, such as a Treasury fund or a share, that is issued as a transferable token on a public blockchain. This tokenization allows for collateral posting, trading against other assets, or gaining leveraged exposure without direct engagement with the issuer. The CoinShares and Token Terminal report highlights that while issuance is straightforward, the true test lies in the usage of these tokenized assets.
Between the second quarter of 2025 and the second quarter of 2026, total cryptocurrency asset deposits decreased by approximately 15%. This decline reflects both withdrawals and a reduction in crypto asset prices. In contrast, real-world asset deposits across lending platforms and decentralized exchanges saw an increase, rising from $2.3 billion to $7.4 billion during the same period. This trend also appeared on spot decentralized exchanges, where aggregate volumes, predominantly crypto-native, fell by about 70%. Simultaneously, real-world asset spot volumes grew by roughly 220%, albeit from a smaller base.
Growth Drivers and Investor Behavior
Tokenized equities are leading the growth in holder count, surpassing institutional products over the past year. This expansion is primarily driven by enhanced access, with lower minimum investment sizes attracting a wider investor base. Even as capital per holder remains modest, the holder base is expanding significantly.
The average wallet balance, calculated by dividing assets under management by on-chain holders, reveals a clear distinction between different segments. Products issued through xStocks show balances indicative of broad retail participation. In contrast, BlackRock’s BUIDL shows average balances in the tens of millions of dollars. While wallets do not perfectly equate to individuals, this substantial difference offers informative insights.
Institutional capital, meanwhile, is concentrating in collateral that generates yield. Current on-chain yields range from approximately 3.2% to 5.5%. Tokenized Treasury funds are at the lower end of this spectrum, while private credit, lending markets, vaults, and funding rate strategies offer progressively higher yields. Investors are prioritizing yield-bearing assets that continue to earn while supporting borrowing. This preference explains the clustering of deposits in such assets on established platforms like Aave, Morpho, and Kamino. Approximately 70% of real-world asset deposits are situated on lending venues built on Ethereum.
Revenue and Future Outlook
Platforms facilitating this activity are not yet fully capturing its value. Application revenues have declined year-on-year for both lending and trading services, as real-world asset activity remains comparatively small against crypto-native markets. Hyperliquid stands out, generating significantly more application revenue than other venues. This is partly attributed to derivatives economics, where high trading frequency translates into recurring fees. Hyperliquid operates at both the application and settlement layers, rather than relying on a third-party chain.
Morpho, the second-largest lending platform, currently operates without a protocol-level take rate. Trading venues also exhibit the highest revenue multiples within their peer group, based on fully diluted market capitalization. This valuation reflects capital velocity and operating leverage, similar to the logic applied to exchange businesses in public equities.
The report draws a parallel between today’s tokenized stocks and USD stablecoins in 2019. Both are currently small relative to their addressable markets, experiencing rapid growth, and are dependent on developing infrastructure. This comparison signifies a developmental stage rather than a predetermined outcome. A key difference from 2019 is the availability of on-chain, auditable data, which allows advisors to track trends directly.
The full report provides granular, venue-level data on deposits, volumes, yields, and revenues across major lending platforms and exchanges.
Frequently asked questions
What are tokenized real-world assets?
Tokenized real-world assets are claims on conventional assets, like shares or Treasury funds, issued as transferable tokens on a public blockchain. This allows for easier trading and collateralization without issuer involvement.
Why are tokenized equities growing so quickly?
Tokenized equities are growing rapidly in holder count primarily due to increased accessibility. Lower minimum investment sizes are admitting a broader set of investors, expanding the holder base significantly.
How do tokenized equities compare to traditional equities?
Tokenized equities are a nascent category within the vast global equity market. While growing fast by holder count, they represent a much smaller value compared to traditional equities, which exceed $100 trillion.
Where is institutional capital flowing in the tokenized asset space?
Institutional capital is concentrating in collateral that generates yield. This includes tokenized Treasury funds, private credit, lending markets, vaults, and funding rate strategies, with a preference for established venues.