Ethereum captures 74% of tokenized ETF market as inflows surge over past year
Stocks
Ethereum has solidified its position as the primary blockchain for tokenized ETFs, capturing approximately 74% of the market with a total capitalization nearing $438 million. This growth is largely attributed to Ondo Finance, which leverages its Global Markets platform to issue 1:1 backed tokens of traditional assets like BlackRock’s iShares Core S&P 500 ETF. The platform's flagship product, IVVon, experienced a 150% market cap surge between mid-April and mid-May 2026, highlighting rapid institutional adoption. By partnering with major asset managers like BlackRock and Franklin Templeton, Ondo has successfully integrated traditional financial products into DeFi ecosystems. This shift provides investors with 24/7 trading, fractional ownership, and instant cross-border settlement capabilities. While Ethereum currently dominates due to its mature custody and redemption infrastructure, Ondo plans to expand to Solana and BNB Chain. Ultimately, the rise of tokenized ETFs creates structural demand for Ethereum blockspace while contributing to a broader RWA market that has already surpassed $33 billion in value.
Key points
- ▸Ethereum holds 74% of the tokenized ETF market, totaling nearly $438 million.
- ▸Ondo Finance's IVVon token saw a 150% market cap increase in one month.
- ▸Ondo Finance partners with BlackRock and Franklin Templeton for on-chain asset issuance.
- ▸Total tokenized real-world asset market value has exceeded $33 billion globally.
Background
Ondo Finance is a protocol that bridges traditional financial assets with blockchain technology by issuing 1:1 backed tokens. Its Global Markets platform allows users to access tokenized versions of stocks and ETFs, enabling these assets to be used as collateral within decentralized finance protocols.
Relevance
8.5/10