Analysis reveals exchanges hold 44% of tokenized stock investments, with concentration risk in self-custodial wallets and majority of onchain trading driven by farming and automation rather than organic activity.
RWA & Tokenization ·
Research into the distribution of tokenized stock holdings reveals significant concentration among centralized venues and large wallet holders. Centralized exchanges account for 44% of all tokenized equity investments, while just 718 large self-custodial wallets control 72% of the value held outside exchanges. This concentration pattern suggests potential vulnerability to regulatory or operational disruptions at major platforms, as well as outsized influence from a small number of decentralized holders.
The nature of onchain activity in this market also raises questions about genuine investor participation. Only 14% of tokenized equity trading appears to reflect organic market activity, according to the analysis. The remainder stems from reward farming incentives and automated trading strategies, which together account for 53% of observed trading volume. This dynamic suggests that much of the current market movement may be driven by protocol incentives and algorithmic execution rather than fundamental investment decisions.
What remains unclear is whether these patterns persist as the tokenized equities market matures, or whether regulatory changes to either crypto venues or traditional asset issuers will reshape holder distribution and trading behavior over time.