Tokenized stocks are moving deeper into decentralized finance as more of the assets enter trading pools and lending markets rather than remaining passively held on-chain. DeFi TVL tied to tokenized equities has climbed 1,960.8% year over year to $247.8 million, showing a sharp increase in the amount of stock-linked capital actively deployed across crypto-native financial applications.
According to Token Terminal’s tokenized assets explorer, the DeFi figure is distinct from the broader tokenized-stock market cap, which currently stands near $3.4 billion. That distinction matters because TVL measures assets deployed into financial protocols, while market capitalization measures the value of tokenized equities issued and circulating on-chain.
Liquidity Pools Capture Most DeFi Capital
The capital remains concentrated across a small number of networks. Robinhood Chain holds approximately $98.2 million, Solana $87.4 million and BNB Chain $36.3 million, giving the three networks a combined 89.5% share of tokenized-stock DeFi TVL. That concentration shows that the category is growing quickly without yet becoming evenly distributed across blockchain ecosystems.
Protocol-level data reveals a similarly concentrated structure. Uniswap v4 accounts for about $65.4 million, Kamino Lend $43.1 million and Uniswap v3 $41.8 million. Together, those three venues hold more than $150 million of the $247.8 million total, placing decentralized trading and lending infrastructure at the center of current tokenized-equity usage.
The composition is consistent with a broader shift from issuance toward utility. Binance Research found that 65.4% of tokenized-equity DeFi capital was deployed in liquidity pools and another 28.1% in lending markets, with smaller portions used in yield-tokenization products and other applications. That means much of the deployed capital is being used for trading liquidity or credit rather than simply stored in wallets.
Tokenized Stocks Move Beyond Passive Ownership
Lending provides one of the clearest examples of that transition. Tokenized equities can increasingly function as collateral for on-chain borrowing, allowing holders to access liquidity without first selling the underlying stock-linked token. Binance Research found borrowing utilization rising materially in some markets, although the absolute amounts remain small compared with established crypto collateral such as ETH or stablecoins.
The rapid TVL increase should not, however, be interpreted as proof of equivalent growth in long-term investor demand. Capital deposited in liquidity pools can respond quickly to incentives, trading opportunities and changing market conditions, while tokenized-stock market cap, trading volume and DeFi TVL measure different aspects of adoption.
The market therefore appears to be progressing from an issuance race toward a distribution and utilization phase. The next meaningful indicators will be whether liquidity remains after incentives normalize, lending utilization continues rising and activity expands beyond the small group of chains and protocols currently dominating TVL. Those measures will provide a stronger test of whether tokenized equities are becoming durable DeFi infrastructure rather than simply a fast-growing asset category.