USDC emerges as the go-to stablecoin powering tokenized equities’ billion-dollar moment

Ondo Global Markets crossed $1 billion in total value locked for tokenized stocks by May 2026, roughly eight months after launching in September 2025. Ondo executives have suggested the platform could reach $5 billion by year-end.

The numbers behind the milestone

The entire tokenized equities market sat at roughly $424 million in mid-2025. By March 2026, that figure had ballooned to approximately $960 million, according to RWA.xyz data. Ondo alone holds about 60% of that market share.

CRCLon, an Ondo tokenized equity product, has surpassed $100 million in TVL on its own. It now ranks among the largest onchain tokenized equities, generating millions in daily trading volume.

The broader tokenized real-world asset market, excluding stablecoins, grew roughly 30% in Q1 2026 alone, reaching approximately $29 billion in onchain value.

Why USDC keeps winning the settlement game

USDC transfer volumes have reached staggering levels, with $1.26 trillion referenced in related reporting. Circle’s own tokenized money market fund, USYC, has surpassed $2 billion in assets under management.

Tether’s USDT still dominates overall volume. But when institutions are building tokenized equity products, they tend to reach for USDC. Circle has spent years cultivating a compliance-first reputation, obtaining licenses and publishing regular attestation reports.

The bigger picture for tokenized finance

Tokenized equities put existing financial instruments—stocks, bonds, funds—onto blockchain rails where they can settle faster, trade around the clock, and reach investors who might not have brokerage accounts but do have crypto wallets.

The regulatory picture is still developing. US regulatory clarity has been evolving slowly, and bipartisan stablecoin legislation is moving through Congress. Tokenized equities are still tiny compared to traditional markets: a $1 billion TVL platform is a rounding error for the NYSE.

What investors should be watching

Ondo’s 60% market share gives it a significant first-mover advantage. Circle’s USYC surpassing $2 billion AUM and USDC’s role as default settlement currency for tokenized stocks and bonds reinforces Circle’s position in the broader financial system.

The $5 billion year-end projection from Ondo deserves healthy skepticism. Investors should pay attention to whether regulatory developments continue trending favorably and whether institutional liquidity providers begin committing real capital to tokenized equity markets.

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