Grayscale, a prominent player in the cryptocurrency asset management space, recently unveiled its research on equity tokenization, pinpointing five blockchain networks that are well-positioned to benefit from this emerging trend. In a report published on July 9, Grayscale's head of research, Zach Pandl, emphasized that Ethereum, Solana, BNB Chain, Avalanche, and Canton Network could play critical roles as the landscape of ownership models evolves.
The study outlines three distinct phases of equity tokenization. The first phase centers around third-party wrappers, which currently dominate the market, accounting for over 70% of tokenized stocks by value. Under this model, traditional shares are converted into tokens through special-purpose vehicles (SPVs). Investors receive tokens that represent claims on these vehicles rather than direct ownership of the stocks themselves. This method is predominantly supported by Ethereum, Solana, and BNB Chain, enabling trading and integration within decentralized finance (DeFi) platforms.
Moving to the second phase, Grayscale highlights the Depository Trust & Clearing Corporation (DTCC)'s upcoming pilot program, which will utilize the Canton Network as its foundational blockchain. This pilot aims to onboard existing eligible securities onto the blockchain through regulated post-trade infrastructure, a departure from the wrapper-based systems previously discussed. Pandl elaborated on this shift, stating, “We see the tokenization of equity markets progressing in three phases, with each phase driving value to different types of blockchain infrastructure.”
In this new entitlement model, the DTCC intends to enhance the role of Canton Network while also supporting public blockchains that facilitate tokenized assets. This pilot could solidify Canton Network’s influence in the blockchain ecosystem.
The final phase proposed by Grayscale, termed issuer-sponsored tokenization, envisions companies issuing their securities directly on blockchain networks. The report notes that Securitize became the first public company to tokenize its common stock during its initial public offering on the New York Stock Exchange. Grayscale suggests that this model holds substantial long-term promise, potentially benefiting Ethereum, Solana, and Avalanche the most as it gains traction. However, significant regulatory developments will be necessary to foster broader adoption.
This material is for informational purposes only and does not constitute financial advice.
