Grayscale maps three phases of stock tokenization and names five blockchains positioned to benefit

News Editor

2026-07-14 01:25:51

Grayscale’s head of research, Zach Pandl, says tokenized equities are moving through three distinct stages, with different blockchain networks likely to gain at each step. In the first stage, third-party issuers use wrapper structures in which a special purpose vehicle holds the underlying shares and tokens represent a claim on that vehicle. Grayscale says more than 70% of tokenized stocks by market value currently follow this model, with trading concentrated on Ethereum, Solana, and BNB Chain. The second stage is an entitlement model, which Grayscale says is reflected in DTCC’s planned pilot on Canton Network. Rather than creating a new version of a security, the setup would place existing eligible securities onto blockchain rails through regulated post-trade infrastructure. The third stage is issuer-led issuance, where companies issue securities natively onchain. Grayscale points to Securitize, which it says became the first listed company to tokenize its own common stock at the time of its New York Stock Exchange listing. Grayscale argues this final model has the greatest long-term potential, though it still depends on clearer regulation, and says Ethereum, Solana, Avalanche, BNB Chain, and Canton Network are the networks most likely to benefit from growth in tokenized equities.

GrayscaleTokenized StocksDTCCCanton NetworkEthereumSolanaAvalanche

Tokenized equities are advancing through three stages, according to Grayscale head of research Zach Pandl, who said the next major step will be a DTCC pilot on Canton Network that would allow tokenized stocks and other assets to move through regulated financial infrastructure using blockchain rails.

Pandl said tokenized stocks can offer several benefits to users, including 24/7 trading. Grayscale’s framework breaks the market into three models, each with different implications for blockchain infrastructure.

The wrapper model still dominates

The first phase is the third-party wrapper model. In this structure, an issuer holds the underlying shares through a special purpose vehicle, or SPV, while the tokenized stock represents a claim on that SPV.

Grayscale said more than 70% of tokenized stocks by market value currently use this format. These assets do not represent direct ownership of the underlying shares, but they can be used in DeFi and may appeal to retail investors. Grayscale said such products are now trading on networks including Ethereum, Solana, and BNB Chain.

DTCC pilot represents the second stage

The second phase is what Grayscale calls the entitlement model. It cited DTCC’s pilot as the clearest example. Under this approach, the goal is not to create a new version of a security. Instead, existing eligible securities are brought onto blockchain infrastructure through regulated post-trade systems, with Canton Network serving as the first blockchain network for the pilot.

Issuer-led onchain issuance is the third phase

The third phase is issuer-led issuance, where companies issue securities natively onchain. Grayscale said Securitize became the first listed company to tokenize its own common stock when it listed on the New York Stock Exchange last week.

Grayscale said this model has the greatest long-term potential, though it still requires clearer regulation. In its view, issuer-led issuance would be better suited to open-architecture chains such as Ethereum and Solana, as well as hybrid networks such as Avalanche.

Five networks named as likely beneficiaries

Grayscale’s main conclusion is that tokenized equities will not follow a single path. The wrapper model, the entitlement model, and issuer-led issuance are likely to coexist for years.

Based on that view, Grayscale said the blockchain networks most likely to benefit from growth in tokenized stocks are Ethereum, Solana, BNB Chain, Avalanche, and Canton Network.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

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