Collateralized tokens account for 86.5% of tokenized stocks

Wrapper tokens backed by custodied shares dominate the market, while issuer-sponsored and synthetic stocks remain niche Most tokenized stocks are not issued by the companies whose names they carry. They are issued by middlemen. Collateralized tokens now make up 86.5% of the tokenized stock market. Issuer-sponsored shares account for just 6.5%, and synthetic and other tokens fill out the remaining 7%. Who builds the wrappers Technically, these wrapper tokens are backed by actual shares held by a custodian. The token lives on a blockchain, while the underlying stock sits in a traditional brokerage account. Issuer-sponsored tokens work differently. The company itself is involved in putting its equity on-chain. That model currently covers only a sliver of the market. Synthetic tokens are a third route. They are designed to track a stock’s price rather than represent direct ownership of the share. Wider research on the sector puts the issuer-sponsored segment at roughly 6% to 11%, depending on how products are classified. Custody is unusually concentrated. Alpaca custodied the underlying shares for about 83.5% of the market. A market getting bigger, fast The tokenized stock market was v...