I. Report Overview: Is On-Chain US Stocks merely an asset mapping tool, or is it evolving into a new trading system? This CoinFound report provides a clearer answer. Data shows that on-chain US stocks are moving from the "asset on-chain" stage to a stage of restructuring a trading system around liquidity and capital efficiency. This is not driven by a single variable, but by multiple structural forces: Macroeconomic Drivers: The interest rate cut cycle coupled with the awakening of real returns has led to a shift in funds from virtual returns to real cash flow assets; Structural Restructuring: Compliance at the asset layer and high leverage at the trading layer are occurring simultaneously, forming a "dual-track" market structure; Efficiency Leap: 24/7 settlement and a unified margin system significantly improve capital utilization; Final Evolution: On-chain US stocks may evolve into a risk transfer network, reshaping traditional financial pricing power. The core of competition is shifting: On-chain US stocks are no longer about "who can issue assets," but "who can bear liquidity." II. Macroeconomic Drivers and Infrastructure: Return to Real Returns and Restructuring of Clearing Efficiency From a purely technical perspective, on-chain US stocks already possess many of the necessary capabilities. What truly drives its accelerated evolution is the resonance between the macro environment and infrastructure. On the one hand, the interest rate cycle is changing capital preferences. As risk-free rates decline, the market is beginning to repric the "source of yield," and the DeFi model relying on token incentives is gradually becoming ineffective, with assets backed by real cash flow regaining their core allocation focus. On the other hand, on-chain settlement systems are maturing. The widespread adoption of stablecoins has enabled on-chain systems to handle large-scale capital flows for the first time. A typical signal is the 247% increase in USDC on-chain transaction volume. This not only signifies liquidity expansion but, more importantly, that stablecoins are transforming from internal crypto tools into a fundamental settlement layer connecting real-world finance with on-chain systems. Based on this, the advantages of on-chain settlement mechanisms are beginning to emerge: transactions and settlements can be completed synchronously 24/7; traditional T+1/T+2 cycles and time zone limitations are eliminated; and a unified margin account supports cross-asset collateralization. Funds are no longer "tied up" but remain continuously liquid, significantly improving capital efficiency. III. Ecosystem Architecture and Structure: Dual-Track Layering and Centralized Liquidity As the market evolves, on-chain US stocks are gradually forming a clear structural layering: Asset Layer: responsible for compliance, issuance, and rights confirmation; Trading Layer: responsible for liquidity, leverage, and pricing. The two have clearly defined roles and form a highly coupled "dual-track system." In the approximately $376 billion RWA system, this structure has already exhibited significant institutional characteristics. Firstly, there is the centralization of the asset layer.The tokenized equity market size is approximately $1.7 billion, with a market concentration ratio (HHI) exceeding 2,500, exhibiting a significant oligopoly. Ondo holds over 50% market share, followed by xStocks and Securitize. This indicates that compliance and asset issuance capabilities are becoming the most crucial industry barriers. Secondly, there's a surge in liquidity at the trading layer. In January 2026, RWA perpetual contract trading volume increased by 162% month-on-month, reaching $31 billion. Hyperliquid's cumulative trading volume reached $40.6 billion, with peak open interest of $1.5 billion, capturing approximately 70% of the market share. This structure reveals a key logic: assets determine "accessibility," while liquidity determines "how to participate." Fourth, arbitrage models and efficiency: the formation of a prime brokerage-like system. Based on the dual-track structure, the gameplay of on-chain US stocks is undergoing a qualitative change. The market is no longer limited to single-asset holdings but is gradually evolving into a multi-strategy system approaching traditional prime brokerages. Its core lies in expanding the sources of returns from single price fluctuations to a multi-dimensional combination through structural design. Current mainstream strategies include: Funding rate arbitrage: constructing a neutral portfolio by combining long positions in the spot market with short positions in futures contracts to hedge price risk and obtain funding rate returns. The normal annualized return is low double digits, which can be increased to 40%+ during periods of high volatility; Cross-time zone basis arbitrage: utilizing the 24/7 on-chain trading feature to capture event-driven price differences during traditional market closures and achieve convergence after market reopening; Collateral reuse strategy: using interest-bearing RWA as collateral to participate in derivatives trading while obtaining approximately 3.5%–4% of the underlying return, achieving cumulative returns. A common feature of these strategies is that funds can be circulated among multiple markets and strategies, achieving "continuous operation." It is precisely for this reason that on-chain US stocks are gradually evolving from a trading market into a capital operation system centered on capital efficiency. V. Risks, Challenges, and the Endgame: Structural Friction and the Shift in Pricing Power While the dual-track system is taking shape, on-chain US stocks are still in a transitional phase. The current frictions essentially stem from the shift between the old and new financial systems. First, there are structural risks. Compliance tiers lead to liquidity fragmentation, with some RWAs experiencing "price without market," and cross-chain price discrepancies of approximately 1%–3%. In extreme market conditions, oracle biases may trigger price de-anchoring and a chain reaction of liquidations. Second, there is the regulatory game. The US SEC still treats highly leveraged synthetic assets in a gray area, restricting participation by domestic users; regulatory sandboxes in Switzerland and Bermuda are currently the main areas for this, creating temporary regulatory arbitrage opportunities. However, in the long run, these frictions are more like transitional costs.According to the report's estimates, by the 2030s, the scale of tokenized equity may reach $20 billion to $190 billion; the broad RWA market size may reach $2 trillion to $18 trillion. During this process, on-chain US stocks are more likely to evolve into a 24/7 cross-market risk transfer network, gradually influencing traditional financial pricing mechanisms. VI. Core Conclusions and Structural Implications: The essence of on-chain US stocks is not asset tokenization, but rather a restructuring of capital operation methods centered around settlement and margin systems. Assets shift from "held assets" to "liquid collateral units," making capital efficiency a core competitive variable. Structurally, the separation of the asset layer and the trading layer allows compliance and liquidity capabilities to be concentrated, driving on-chain finance towards modularization and institutionalization. The asset layer shows a clear trend of concentration, with leading institutions like Ondo dominating, reflecting that compliance licenses and asset issuance capabilities are becoming key barriers. Simultaneously, the tokenization path is gradually becoming clearer, and asset tokenization is moving from a single mapping towards a standardized issuance and custody system. In terms of efficiency, continuous settlement and collateral reuse mechanisms enable funds to circulate across markets, breaking the constraints of traditional clearing and account systems. Based on this, the market is gradually shifting from a single trading logic to a multi-strategy system centered on price spreads, time, and structure, with on-chain mechanisms beginning to possess prime broker-like functions. Overall, the current liquidity fragmentation and regulatory friction are essentially temporary costs in the transition between the old and new financial systems. In the long term, on-chain US stocks are more likely to evolve into a 24/7 risk transfer network, driving the financial pricing mechanism towards a more open system. [CoinFound]
On-Chain U.S. Stocks: The Dual-Track Flywheel Reshaping Financial Markets
The CoinFound report on on-chain U.S. stocks reveals not merely an evolution of asset tokenization but a fundamental restructuring of financial market infrastructure. As we analyze this dual-track system, it becomes clear that we’re witnessing the early stages of a paradigm shift where crypto infrastructure is no longer just replicating traditional finance but re-engineering it for capital efficiency and continuous operation.
The Dual-Track Market Structure: Asset vs. Trading Layers
The most significant development is the clear separation of functions in the emerging ecosystem. The asset layer, characterized by concentrated compliance and issuance capabilities (Ondo commanding >50% market share), stands in stark contrast to the trading layer, where liquidity provision has become the primary battleground. This structural division creates a natural market dynamic where assets determine “accessibility” while liquidity determines “participation methods.”
For investors, this bifurcation presents distinct opportunities:
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Asset Layer Players: Projects with robust compliance frameworks and institutional partnerships (Ondo, xStocks, Securitize) benefit from regulatory moats and first-mover advantages in tokenizing real-world assets. The high market concentration (HHI >2,500) suggests this oligopolistic structure will persist, potentially creating value for established players.
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Trading Layer Innovators: Platforms like Hyperliquid (capturing 70% of perpetual contract trading volume) are building the infrastructure that enables sophisticated strategies. Their success hinges on capital efficiency, liquidity depth, and the ability to capture funding rate spreads – a competitive landscape different from traditional exchanges.
Macroeconomic Catalysts: The Return to Real Returns
The confluence of declining risk-free rates and maturing stablecoin infrastructure has created a perfect storm for on-chain U.S. stocks. As DeFi models reliant on token incentives lose effectiveness, assets backed by real cash flows regain their appeal. The 247% increase in USDC on-chain transaction volume isn’t just a liquidity signal; it represents the transformation of stablecoins from internal crypto tools to a fundamental settlement layer connecting traditional finance with on-chain systems.
This macro shift fundamentally changes the risk-reward calculus for crypto investors. The days of purely speculative yield farming are giving way to a more sophisticated capital allocation model where real-world cash flow generation meets the efficiency benefits of blockchain infrastructure.
The Arbitrage Revolution: Prime Brokerage Functionality Emerges
The most compelling development is the evolution of trading strategies beyond simple price speculation. The emergence of multi-dimensional approaches – funding rate arbitrage, cross-time zone basis trading, and collateral reuse – represents a qualitative leap in market sophistication.
Consider the funding rate arbitrage strategy, which can generate 40%+ returns during periods of high volatility by constructing neutral portfolios combining spot and futures positions. This mirrors traditional prime brokerage functionality but is enhanced by 24/7 trading and continuous collateral utilization.
For investors, this creates a new frontier for alpha generation. The ability to circulate funds across markets and strategies – “continuous operation” – represents a paradigm shift from the traditional “buy and hold” or directional trading models. Projects that can optimize these strategies and provide the infrastructure for their execution will likely capture significant value.
The Endgame: Risk Transfer Network and Pricing Power
The report’s projection of tokenized equity reaching $20B-$190B by the 2030s underscores the transformative potential of this sector. However, the most significant implication is the potential evolution of on-chain U.S. stocks into a 24/7 risk transfer network capable of challenging traditional financial pricing mechanisms.
This raises critical questions about the future of market structure:
- Will on-chain systems gradually influence, or even dominate, price discovery for U.S. equities?
- How will traditional financial markets adapt to a parallel system operating 24/7 with superior capital efficiency?
- What role will oracles play in bridging these two systems, especially during market stress?
The current 1-3% cross-chain price discrepancies and regulatory gray areas represent transitional frictions rather than permanent features. As the market matures, these inefficiencies will likely be arbitraged away, leaving a more integrated but structurally different financial ecosystem.
Investment Implications and Strategic Considerations
For experienced crypto investors, the on-chain U.S. stock phenomenon presents a spectrum of opportunities and risks:
Opportunities:
1. Liquidity Infrastructure: Projects solving liquidity fragmentation and enabling cross-chain collateral transfer are positioned to benefit from the growing sophistication of trading strategies.
2. Oracle Solutions: Robust oracle systems that can handle real-world asset data without introducing price de-anchoring during stress periods will become increasingly critical.
3. Regulatory Arbitrage: Projects establishing regulatory sandboxes in jurisdictions like Switzerland and Bermuda may capture near-term advantages while frameworks evolve.
4. Prime Brokerage Protocols: DeFi protocols that can integrate with on-chain stock systems to provide sophisticated trading tools will likely see significant adoption.
Risks:
1. Regulatory Overreach: The SEC’s treatment of highly leveraged synthetic assets remains a significant wildcard that could disrupt current market structures.
2. Concentration Risk: The oligopolistic nature of the asset layer creates dependency on a few major players whose regulatory challenges could impact the entire ecosystem.
3. Oracle Fragility: The report’s warning about potential oracle biases triggering chain reactions of liquidations highlights a critical systemic risk.
4. Transition Costs: The current inefficiencies and frictions between traditional and on-chain systems represent near-term costs that could impact returns.
Conclusion: The New Financial Architecture
On-chain U.S. stocks represent more than just another crypto narrative – they signal the beginning of a fundamental reorganization of financial market infrastructure. The dual-track system, with its clear separation between compliance and liquidity functions, is creating a more modular and efficient financial architecture.
For investors, the key takeaway is that the competitive landscape is shifting from “who can issue assets” to “who can bear liquidity.” This reorientation favors projects with sophisticated trading infrastructure, robust risk management capabilities, and the ability to capture complex arbitrage opportunities.
As this ecosystem matures, we’re likely to see the emergence of a parallel financial system – operating 24/7 with superior capital efficiency – that gradually influences, and potentially reshapes, traditional market pricing mechanisms. The current liquidity fragmentation and regulatory uncertainties are transitional features, not permanent characteristics, of this evolution.
The investors who will benefit most are those who recognize that on-chain U.S. stocks are not merely a new asset class but the foundation of a new financial architecture – one where capital efficiency, continuous operation, and sophisticated risk transfer mechanisms are the primary value drivers.