tl;dr
Solana-based tokenized stocks have rapidly grown to over $100 million in market capitalization within a month of launching, driven mainly by Backed Finance's xStocks, giving Solana a 20.4% market share. This market size is over eight times larger than Ethereum and its layer-2 ecosystems combined. To...
Solana-based tokenized stocks have achieved remarkable growth, surpassing $100 million in market capitalization less than a month after their launch on June 30. Data from rwa.xyz shows the market on Solana reached nearly $102 million by July 22, marking a 242% increase from the initial $29.8 million. This surge is primarily driven by xStocks, issued by Backed Finance, positioning Solana with a 20.4% share of the tokenized stock market.
Ethereum and its layer-2 ecosystems, including Arbitrum, Polygon, and Base, hold $11.8 million, making Solana’s tokenized stock market over eight times larger. The top tokenized stock is TSLAx, representing Tesla shares, boasting a market cap of $13.6 million with 11,073 holders. Other significant tokenized assets include SPYx, a tokenized S&P 500 product with over $10 million in market cap and 9,886 holders, and CRCLx, Circle’s tokenized shares, with $9.1 million in market cap split among 5,746 holders. Additionally, xStocks have surpassed $300 million in total on-chain trading volume, highlighting substantial market activity.
Despite this explosive growth, composability—the ability to use tokenized assets within DeFi protocols—remains underutilized. Kamino, a Solana-based money market, supports eight xStocks tokens as collateral, with a combined market cap near $50 million; however, only about $585,000, roughly 11%, is currently leveraged. Raydium's liquidity pools show similar trends, with $1.1 million liquidity for TSLAx and $1.9 million for SPYx, but tokenized stocks deposited represent only a fraction of these amounts. Overall, DeFi utilization stands low, with just 4.7% of TSLAx and 7% of SPYx market caps actively used in DeFi.
The limited DeFi interaction mainly results from capital flowing from crypto into traditional financial products rather than the reverse. Michael Cahill, CEO and co-founder of Douro Labs, notes that traditional market investors entering the crypto space are not yet engaging deeply with DeFi composability. He cites the Apollo Diversified Credit Securitized Fund (ACRED), which has a net asset value exceeding $100 million, yet shows minimal use of on-chain lending pools—illustrating a broader pattern across tokenization platforms.
Cahill remains optimistic about the future, emphasizing that the sector is just beginning to evolve. He contrasts the current momentum with earlier efforts like Mmirror during the Terra era, suggesting that growing familiarity will spur adoption. He also highlights the potential impact of large institutional projects, such as Strategy, and expects user-friendly interfaces bridging traditional finance and on-chain products will act as key catalysts. Cahill envisions these developments lowering barriers and accelerating growth dramatically, potentially igniting rapid expansion once broader acceptance takes hold.