US firms and ETFs make up 91.8% of the tokenized stock market
RWA Signal Insight
StocksThe tokenized stock market has reached a valuation of $4.64 billion, with American equities and ETFs accounting for 91.8% of the total market capitalization. Despite this heavy reliance on US assets, approximately 90% of tokenized stock issuance is managed by non-US entities, highlighting a significant jurisdictional disconnect. Market leadership is highly concentrated, with bStocks, Ondo Finance, and Backed Finance controlling the vast majority of the sector. A critical operational dependency exists as Alpaca, a US-based broker-dealer, acts as the custodian for 83% to 94% of the underlying shares backing these tokens. This structure allows global users to access US equity exposure through offshore platforms, bypassing traditional brokerage barriers. However, the extreme concentration in both issuance and custody introduces systemic risks to the sector's operational health. As the market grows, the dominance of US assets underscores a clear global demand for American financial instruments onchain. The future of the industry depends on whether this concentration persists or if the market diversifies its custodial and issuing infrastructure.
Key points
- Tokenized stock market reached $4.64 billion with 91.8% exposure to US equities and ETFs.
- Non-US issuers control 90% of the market, while US-based Alpaca custodies up to 94% of shares.
- bStocks, Ondo Finance, and Backed Finance collectively dominate the majority of sector market share.
- DeFi deposits linked to tokenized stocks have recently approached the $300 million threshold.
Background
Tokenized stocks are blockchain-based digital assets that represent ownership claims on traditional equities or ETFs held in a custodial brokerage account. These tokens allow investors to gain exposure to real-world financial markets within decentralized finance ecosystems, often providing 24/7 trading capabilities and fractional ownership. The underlying shares remain in traditional custody, while the token acts as a verifiable, transferable digital receipt.