Tokenized Stocks Grew 395% in a Year While DeFi Use Stayed Under 3%
Tokenized stocks onchain expanded rapidly over the past year, increasing 395% according to a RedStone report, while decentralized finance usage of those assets remained below 3%. The report also finds a large imbalance between circulating tokenized stock supply and the collateral held in lending protocols, and that most leveraged equity exposure occurs via perpetual futures rather than onchain margin positions.
Why It Matters
A sharp rise in tokenized stock supply with only a small share deployed in DeFi markets highlights growing off-chain custody or custody-light issuance practices and concentrates leverage in derivative venues, raising questions about transparency and onchain risk allocation. The gap between supply and lending collateral could matter for liquidity and counterparty risk assessments among onchain participants and regulators.
Key Facts
- Year-over-year growth in tokenized stocks: 395% increase
- Share of tokenized stocks used in DeFi: Under 3%
- Lending collateral held: Approximately $81 million
- Total tokenized stock supply: About $3.17 billion
- Primary venue for leveraged equity exposure: Almost entirely perpetual futures (offchain/on derivative venues, per report)
RedStone's analysis shows tokenized equities have seen steep expansion, with supply onchain growing 395% year-over-year. Despite that growth, the fraction of tokenized stock supply actually engaged within decentralized finance protocols remains small, below 3% of the total.
The report highlights a notable disparity between the amount of tokenized shares in circulation and the collateral parked in lending markets: roughly $3.17 billion of tokenized stock supply exists while only about $81 million is held as lending collateral. That suggests most tokenized shares are not being used as collateral in onchain lending or are held in custody arrangements outside of DeFi lending rails.
RedStone also finds that leveraged exposure to equities tied to these tokens is predominantly concentrated in perpetual futures markets rather than onchain margin or lending positions. In other words, traders seeking leverage are largely using derivative venues, which can be offchain or centralized, instead of leveraging tokenized stocks through DeFi protocols.
Taken together, the findings point to rapid issuance of tokenized equities alongside limited integration into DeFi credit markets and a concentration of leverage in derivatives. The dynamics underline potential transparency and risk-allocation questions for market participants and observers tracking onchain equity representations.
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