Tokenized stocks are seeing more onchain trading and are starting to be used as lending collateral, but both remain a small part of overall DeFi activity, according to data published July 16 by onchain analytics firm Token Terminal.
Token Terminal’s dashboard showed $1.8 billion in spot DEX trading volume for tokenized equities over the past 90 days. Deposits into lending markets, which the firm uses as a measure of collateral use, stood at $23 million. The firm said both series “continue to trend higher, albeit from small baselines,” with activity led by exchange-traded fund trackers such as QQQ and SPY, issuers Binance and xStocks, the BNB Chain and Solana networks, and venues including Uniswap, Orca and Kamino.
Trading volume is split across two chains
On the trading side, the $1.8 billion 90-day total was divided almost evenly between two networks. Token Terminal’s dashboard put BNB Chain at 47.3% and Solana at 45.5%.
By asset, two ETF tracker tokens dominated the market. A QQQ token accounted for 40.5% of volume, while an SPY token made up 40.4%, leaving tokenized shares tied to individual companies well behind.
Even so, the market is still small relative to broader DeFi trading. DefiLlama recorded $45 billion in trailing 30-day volume on Uniswap alone as of July 17. On that comparison, roughly three months of tokenized-stock DEX turnover amounts to only a small fraction of one month’s activity on a single exchange.
Collateral use is smaller and more concentrated
The lending side is smaller still and more concentrated. Of the $23.1 million in tokenized-stock lending TVL, xStocks represented 86.5% of issuer share, Solana accounted for 85.5% of chain share, and Kamino’s lending market held 82.6% of venue share, according to Token Terminal.
Measured against the underlying asset base, that level of deployment remains thin. DefiLlama data as of July 17 showed xStocks at $330 million in total value locked, almost entirely on Solana. Based on those figures, only a low-single-digit percentage of outstanding xStocks tokens is being used as lending collateral, while the rest is being held or traded rather than deployed.
The concentration at the venue level appears to reflect Kamino’s overall scale rather than a large allocation to tokenized stocks. DefiLlama put Kamino’s total TVL on Solana at $1.1 billion as of July 17, which means the tokenized-stock collateral sitting there makes up less than 1% of the lending market’s book.
Overall, the collateral side still sits in the low tens of millions, against a supply base that is an order of magnitude larger.