Tokenized real-world assets have grown nearly tenfold in three years, with Ethereum retaining the largest market share. Collateralized products dominate tokenized equities, but owning a stock
The market for tokenized real-world assets (RWAs) has reached $46.3 billion, up 947.6% over three years, according to Token Terminal data. The expansion reflects growing adoption of blockchain-based financial instruments, but tokenized equities reveal an important distinction between digital exposure and legal ownership.
Ethereum accounts for $20.8 billion in issued assets, followed by BNB Chain at $6.2 billion and Solana at $3.9 billion. The broader market spans Treasury products, investment funds, credit instruments and equities across multiple networks.
RWA market cap is $46.3B, up 947.6% over the past 3 years
Ethereum leads with $20.8B in assets issued on the chain, followed by BNB Chain ($6.2B) and Solana ($3.9B) https://t.co/j0dHK4Aj4k
— Token Terminal
(@tokenterminal) October 30, 2026
For investors, the critical question is not simply which blockchain hosts an asset. It is what legal claim the token represents, who controls the underlying securities and whether that claim remains enforceable if an intermediary fails.
In its October 29 research, Token Terminal reported that tokenized equities reached $4.64 billion, matching the level stablecoins first crossed in March 2020.
The comparison is striking, but the two markets serve different purposes.
Stablecoins became widely used as settlement assets, trading collateral and payment instruments. Tokenized equities must also accommodate securities ownership, corporate actions, trading restrictions and investor protections.
Most tokenized stock products are not shares issued directly by the companies they track.
Token Terminal’s figures show that collateralized instruments account for $3.98 billion of the equity-tokenization market. Issuer-sponsored securities and synthetic products represent considerably smaller segments.
Under the dominant model, third parties hold conventional securities and issue blockchain instruments backed by those holdings.
The structure can reduce settlement friction and expand distribution, but it introduces legal and operational dependencies between investors, issuers and custodians.
The distinction becomes clear in the documentation for xStocks, an established tokenized equity offering.
According to the issuer’s legal overview, xStocks are tracker certificates issued by Jersey-based Backed Assets (JE) Limited. They are designed to provide economic exposure to publicly traded shares held with regulated custodians.
The tokens do not confer shareholder voting rights.
Instead, holders own financial instruments linked to the value of the underlying equities. The issuer describes collateral-segregation arrangements involving an independent security agent.
If the issuer defaults, that agent may take control of collateral accounts and distribute proceeds according to the governing documentation.
This is different from assuming every token holder automatically becomes an unsecured creditor. Recovery rights depend on the contractual structure, collateral protections and applicable law.
Dividend treatment also differs. Kraken’s xStocks documentation explains that economic benefits from dividends are reflected through token rebasing rather than conventional cash distributions to registered shareholders.
The differences are easier to understand when the two ownership models are compared directly.
INVESTOR RIGHTS / COMPARISON Traditional Shares vs. Tokenized Equities How ownership structures affect investors 01 / Legal Ownership TRADITIONAL STOCK Beneficial interest in company shares held through a brokerage intermediary. TOKENIZED / XSTOCKS Contractual tracker certificate backed by securities held with custodians. 02 / Voting Rights TRADITIONAL STOCK Generally allows shareholder voting through broker proxy arrangements. TOKENIZED / XSTOCKS Does not grant voting rights in the underlying company. 03 / Dividend Treatment TRADITIONAL STOCK Cash payments or dividend reinvestment, depending on account settings. TOKENIZED / XSTOCKS Economic dividend value reflected through token rebasing. 04 / Intermediary Failure TRADITIONAL STOCK Brokerage custody and insolvency protections; SIPC where eligible in the U.S. TOKENIZED / XSTOCKS Recovery depends on issuer contracts, collateral safeguards and security-agent procedures. Sources: Backed Assets legal documentation; Kraken xStocks FAQ. Rights depend on jurisdiction, issuer and product terms. SIPC does not protect against investment losses.These differences are not necessarily defects in tokenization. They are contractual features that determine what investors can claim when a product is redeemed, transferred or affected by insolvency.
The U.S. Securities and Exchange Commission reinforced the distinction in its January 2026 staff statement on tokenized securities, separating issuer-sponsored arrangements from third-party tokenization models.
The statement provides an analytical framework rather than a blanket regulatory approval of tokenized equity products.
Token Terminal’s dashboard records approximately $3.7 billion in RWA value locked in decentralized finance, equivalent to about 8% of the broader tokenized asset market.
That gap partly reflects the difficulty of integrating regulated securities into unrestricted blockchain markets.
Institutional investors may face eligibility requirements, transfer restrictions and redemption procedures that prevent tokenized instruments from circulating freely through permissionless lending platforms.
The limitations also extend to retail distribution.
Kraken states that xStocks are unavailable to customers in several jurisdictions, including the United States, United Kingdom, Canada and Australia. A token may be technically transferable on a blockchain while remaining subject to contractual and regulatory restrictions.
For DeFi protocols, accepting such assets as collateral introduces questions about liquidation rights, redemption access and whether the token can be transferred to a buyer during market stress.
Those complications help explain why rapid issuance growth has not produced equivalent integration into decentralized lending and trading.
A possible path forward involves permissioned liquidity pools, clearer redemption standards and infrastructure that allows regulated intermediaries to settle eligible securities across blockchain networks.
However, these arrangements must preserve enforceable investor rights rather than treating technical transferability as sufficient.
Token Terminal identifies Binance bStocks, Ondo and xStocks as accounting for 81.17% of tokenized equity capitalization.
The concentration reflects the importance of established distribution channels, custody relationships and regulatory infrastructure. It also leaves the market dependent on a relatively small number of intermediaries.
For investors and crypto-native funds, several checks are particularly important:
Tokenized equities are becoming a genuine financial distribution channel, but their growth cannot be measured solely by the value of assets issued.
The next test is whether legal rights, redemption mechanisms and regulated liquidity can become sufficiently standardized to support deeper secondary markets. Without those foundations, tokenization may expand the number of assets represented on blockchains without delivering the same expansion in usable financial liquidity.
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