Tokenized Stocks Sector Watch: Surging On-Chain TVL and a New DeFi Lending Paradigm
Tokenized stocks TVL is surging as DeFi lending becomes a hot topic. We analyze market data, competitive landscape, and outlook.
Article Citation Summary
Tokenized stocks TVL is surging as DeFi lending becomes a hot topic. We analyze market data, competitive landscape, and outlook.
Recently, the tokenized stocks sector has seen a significant rise in popularity. On the Layer 2 chain launched by a leading internet brokerage platform, the total value locked (TVL) in tokenized stocks and other real-world assets (RWA) reached approximately $618 million within just one month, drawing market attention. Meanwhile, another major crypto exchange has also accelerated its layout, launching a series of tokenized stock products on its Layer 2 network, forming a competitive landscape.
Leading Platform's On-Chain Data Shines as Competitive Landscape Emerges
Data shows that the internet brokerage's Layer 2 chain reached approximately $618 million in TVL within one month, a significant growth rate. For comparison, another major crypto exchange saw its TVL on its L2 network gradually climb to about $1.4 billion during its first year of launch. Currently, the brokerage's on-chain vault TVL continues to grow, which could bring more ecosystem opportunities to its in-app and DeFi wallets.
DeFi Lending Protocols Enter the Scene: Unlocking Liquidity for Tokenized Stocks
One of the core problems facing tokenized stocks is the lack of financing capacity. In markets like the U.S., traditional brokerage accounts can hold stocks and pledge them for financing, but tokenized stocks currently can only be held in DeFi wallets, making collateralized borrowing difficult. To address this pain point, some native DeFi lending protocols have emerged in the industry. For example, one team has built a lending protocol that uses tokenized stocks as collateral, allowing users to deposit tokenized stocks, mint overcollateralized stablecoins (such as AUSD), and borrow funds for other trading. The protocol is live on testnet and undergoing external audits, with initial collateral limits kept conservative to control risks.
The protocol divides collateral into different tiers, prioritizing large-cap stock tokens that are actively traded and well known to users, such as Apple and Nvidia, to lower the adoption threshold and manage risk. Meanwhile, other projects are trying to combine RWA distribution with meme coin trading, using a "trade meme coins and get RWA distributions" approach to expand the user base of tokenized assets.
Platform Competition and Ecosystem Incentives: From Traditional Brokerage to On-Chain Finance
The internet brokerage has extended its traditional brokerage low-fee strategy to its on-chain ecosystem, for example by launching gas fee subsidies early on to attract users and liquidity. Analysts believe that such incentives align with its "inclusive finance" positioning and could push more users into on-chain DeFi scenarios. Meanwhile, competitors are quickly following suit, launching tokenized stock products, and the competition between the two in on-chain finance has already extended from spot trading to tokenized assets and DeFi lending.
Historically, the brokerage once launched a non-custodial wallet but only accelerated its Layer 2 deployment after the regulatory environment became clearer; the other exchange launched its L2 network earlier but initially focused on areas such as the Web3 creator economy. The current collision between the two in the tokenized stocks sector reflects a market focus that is shifting toward the combination of DeFi and real assets.
Market Outlook: Institutional Participation and Product Innovation Are Key
Regarding the total addressable market (TAM) for tokenized stocks, industry views suggest that the "buy and hold" model in markets outside the U.S. is already attractive, while institutional participation and richer on-chain products will be key to scaling up. Some analysts predict that within the next 24 months, the annual trading volume of tokenized stocks could reach $120 to $150 trillion. If true, this would greatly drive the development of on-chain trading infrastructure. In addition, new concepts such as Agentic Trading are believed to potentially benefit from blockchain's programmability, bringing more possibilities to on-chain finance.
Overall, the tokenized stocks sector is in an early stage of rapid growth, and competition among leading platforms may accelerate product iteration and ecosystem building. For users, this trend means more diverse on-chain asset choices and potential liquidity opportunities.
This article is produced by the MSXGO editorial team, AI-assisted, and reviewed through an editorial process. Fee rates and figures are subject to each platform's latest official announcements.