Tokenized equities have grown to approximately $2.8 billion in total market capitalization, tripling their market share to 15% since January, with Ondo Finance, Binance, and xStocks driving the bulk of issuance. The growth reflects accelerating institutional and retail demand for on-chain equity exposure, particularly in markets where direct US equity access is restricted. Ondo's institutional positioning and xStocks' exchange-native model represent distinct structural approaches to the same underlying demand.
For Armada's crypto desk, this market expansion is directly relevant to the collateral eligibility question. Tokenized equities from credible issuers like Ondo could serve as repo collateral alongside tokenized T-Bills, but legal title, redemption mechanics, and bankruptcy remoteness structures vary significantly across issuers. Custody coverage via Fireblocks must be confirmed for each instrument type before any of these assets are accepted. The pace of market growth suggests client inquiries about tokenized equity collateral are likely to increase near-term.