Ethereum captures 41% market share in $1.6B tokenized stocks market

Tokenized stocks just crossed $1.6 billion in total market capitalization, and Ethereum is running away with the lion’s share. The network holds 41.1% of the tokenized equities market, more than any other blockchain, as institutions increasingly settle real-world asset trades on-chain.

The chain-by-chain breakdown

Ethereum’s 41.1% market share puts meaningful distance between it and the competition. Solana sits at 29.6%, while BNB Chain rounds out the top three at 27.8%.

Ethereum’s security model and deep liquidity pools make it the path of least resistance for institutions that need to explain their technology choices to compliance departments. Solana offers speed and lower fees, BNB Chain brings its own user base, but when a fund manager is tokenizing millions in equities, “battle-tested” tends to win over “fast and cheap.”

Data from rwa.xyz pegs the total value of tokenized stocks at approximately $1.55 billion, reflecting a 32.95% increase over the prior 30 days. Monthly transfer volume stands at $3.48 billion.

Who’s issuing and what’s getting tokenized

Two platforms dominate the issuance side. Ondo Finance commands roughly 61% of the market, making it the clear heavyweight. xStocks, associated with Backed Finance, holds about 27%. Together, they account for nearly nine out of every ten dollars in tokenized stock issuance.

As for what’s actually being tokenized, the holdings include Tesla (TSLA), Nvidia (NVDA), and Circle (CRCL) among the top tokenized equities, alongside various ETFs. Tokenized stocks can trade continuously, settle faster than traditional T+1 cycles, and potentially serve as collateral in DeFi protocols.

The institutional backdrop

The NYSE’s parent company, ICE, and Nasdaq have both been exploring blockchain-based solutions for equity trading. The $3.48 billion in monthly transfer volume exceeds the market cap itself by more than double, suggesting active trading and frequent movement of these assets rather than passive holding.

What this means for investors

The concentration risk around Ondo Finance and xStocks deserves monitoring. A market where two platforms control 88% of issuance is one regulatory action away from a significant disruption.

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