Tokenized equity market crosses $1B threshold with Ondo and xStocks leading the charge
According to Foresight Ventures, the tokenized equities market is experiencing consolidation driven by regulatory challenges and liquidity benefits as the sector continues its expansion.
The tokenized stock market has achieved a significant milestone, with total on-chain value exceeding $1 billion, representing another achievement for the rapidly expanding real-world asset (RWA) industry.
Information from RWA.xyz reveals that tokenized equities have crossed the $1 billion threshold, with platforms providing blockchain-based access to conventional stocks experiencing increased trading volume and liquidity pools.
A substantial portion of this activity is centralized on two primary networks. Information from RWA.xyz along with a sector analysis from Foresight Ventures suggests that Ondo Finance and platforms connected to Backed Finance's xStocks offerings represent the bulk of tokenized equity creation and transaction volume.
Foresight Ventures published a report on Tuesday suggesting the market is experiencing consolidation around these pioneering leaders, pointing to regulatory obstacles, liquidity benefits, and varied tokenization approaches as critical elements influencing competitive dynamics in the space.
Tokenized stocks form an early duopoly
The Foresight Ventures report provided to Cointelegraph indicates that while the tokenized stock market has experienced swift expansion, it is becoming progressively controlled by a limited number of platforms.
Information from RWA.xyz indicates that Ondo controls approximately 58% of the market, with tokenized stock offerings launched through the xStocks platform representing around 24%, creating an emerging duopoly within the sector.
Alice Li, an investment partner at Foresight Ventures, explained to Cointelegraph that the pioneering leaders secured an advantage by establishing clear structural decisions regarding liquidity, legal structures and distribution channels.
Building one of these platforms requires liquidity infrastructure, multi-jurisdiction legal rights, and DeFi composability, and those three things pull against each other.
Alice Li, Foresight Ventures
Li indicated that Ondo and xStocks reached their current positions by making "a clear architectural bet early and built deep around it."
The concentration of market share is not exclusive to tokenized equities. In a message posted on X, DeFiLlama founder 0xngmi noted that revenue throughout multiple DeFi sectors is progressively concentrating toward the leading two platforms.
He referenced information from the analytics platform demonstrating comparable trends in stablecoins, derivatives and decentralized exchanges.
Tokenized assets continue to expand across crypto markets
The expansion of tokenized equities occurs alongside wider momentum in blockchain-based RWAs.
Data from RWA.xyz indicates that the aggregate value of tokenized RWAs when excluding stablecoins has reached approximately $26 billion, demonstrating increasing appetite for blockchain-based versions of traditional financial instruments.
The tokenized US Treasury market crossed the $10.8 billion market capitalization threshold on Feb. 26. As of the current writing, the overall sector value stands at $11.13 billion, showing persistent growth.
Transaction activity has similarly increased for tokenized RWAs. Trading volumes in tokenized stocks and exchange-traded funds processed through the 1inch aggregator's partnership with Ondo surpassed $2.5 billion on March 6 since the collaboration commenced in September 2025.