In the RWA boom of recent years, tokenized U.S. stocks are quietly becoming the cutting-edge experiment connecting traditional finance and blockchain. It anchors popular stocks such as Apple, Nvidia, and Tesla, as well as popular ETFs such as SPY and QQQ, to physical assets at a 1:1 ratio through blockchain, allowing non-U.S. investors to trade 24/7, settle instantly, and seamlessly integrate these assets into DeFi lending, DEX trading, and cross-chain liquidity pools.
Ondo and xStocks (issued by Backed Finance, which was later deeply acquired and integrated by Kraken) are the absolute two giants in this track, representing two complementary but different paths, but jointly promoting tokenized stocks from the experimental stage to a mainstream narrative of billions of dollars. With the recent restrictions on U.S. stock brokerage in several countries, the market demand for tokenized stocks has ushered in a new wave of enthusiasm, and Ondo and xStocks are expected to become the two biggest winners in this track.
I. Main Background
Ondo was founded in 2022, initially positioned as introducing structured yield products to DeFi, and obtained more than $50 million in financing within two years. With the continuous decline of the DeFi native market, Ondo released the V2 product in 2023, focusing on the tokenization of U.S. Treasury bonds. In September 2025, Ondo launched tokenized stock products on the Ethereum mainnet for the first time, and the total locked-up amount has now exceeded $3.70 billion. Ondo founder and CEO Nathan Allman worked in Goldman Sachs’ digital asset department for many years. This month, Ondo announced the unexpected death of Nathan Allman, and former President Ian De Bode took over as CEO.
xStocks acted earlier in the field of U.S. stock tokenization. Backed Finance has been determined to bridge stocks and equity assets to the blockchain since 2021, and finally launched xStocks in May 2025, launching more than 60 tokenized stocks/ETFs on the Solana network. With the outbreak of the tokenized stock market, well-known compliant cryptocurrency exchange Kraken announced the acquisition of Backed Finance in December 2025, deeply integrating xStocks into its ecosystem.
II. Underlying Architecture and Compliance
Whether it is Ondo or xStocks, the tokens behind them correspond to real U.S. listed stocks or ETFs. The issuing institution will purchase and hold the corresponding assets through a regulated custodian, and then mint tokens on the chain at a 1:1 ratio. Therefore, from the perspective of asset support, they are more like an on-chain securities certificate, rather than the price-mapped assets launched by protocols such as Mirror and Synthetix before.
The issuing entity of xStocks, Backed Finance, is headquartered in Switzerland, and its products mainly operate in accordance with relevant European and Liechtenstein securities regulations. Each xStocks token essentially corresponds to a transferable security. The biggest advantage of this model is standardization and scalability, which enables it to quickly access a large number of traffic portals such as Kraken and Bybit.
If xStocks is trying to achieve global expansion under the existing regulatory framework, then Ondo’s goal is to enter the U.S. securities system itself. In 2025, Ondo’s acquisition of Oasis Pro became an important turning point for the entire industry. After the completion of the acquisition, Ondo has the ability to build a complete securities issuance, registration, trading and settlement system, which gives it a clear advantage in terms of license endorsement and compliance.
III. Development Status and Trends
Although Ondo launched the tokenized U.S. stock function 3-4 months later, it is quite leading in terms of expansion speed. Currently, it supports more than 260 tokenized assets, while xStocks currently only supports more than 170 tokenized assets. However, judging from the dimensions of trading volume and the number of currency holding addresses, the competitive landscape of tokenized U.S. stocks is mainly dominated by sales channels.
The trading volume of tokenized U.S. stocks issued by xStocks, which is fully supported by Kraken, is often much higher than that of Ondo. Taking Tesla and Nvidia as examples, the trading volume of assets issued by xStocks in the past 24 hours was $24.45 million and $16.44 million respectively, while the trading volume of assets issued by Ondo in the past 24 hours was $5.83 million and $8.30 million, with a difference of more than 2 times. In March of this year, xStocks announced the launch of a points program, and this expectation of issuing coins and airdrops has also greatly stimulated the market activity of xStocks.
xStocks actually carries Kraken’s strategic goal of building a full-asset trading platform and attracting incremental users. In contrast, Ondo’s goal is the asset layer, and it has always been actively promoting the synergistic effect of tokenized stocks and its original treasury bond products. In terms of ecological expansion, Ondo has invested more energy in the traditional financial system this year, such as partnering with Franklin Templeton to launch tokenized ETFs, and reaching a cooperation with Broadridge to enable its tokenized stocks to have shareholder governance and voting functions.
IV. The Beginning of the Tokenization Trend
xStocks represents a typical Internet thinking, and its core competitiveness comes from traffic, liquidity, and network effects. What Ondo is pursuing is another path, and its competitive advantage comes more from regulatory capabilities, institutional cooperation networks, and financial infrastructure barriers. To some extent, the two companies are playing Robinhood and Nasdaq in the crypto industry, respectively.
For global investors, the greatest significance of tokenized U.S. stocks may not be that they can trade Apple or Nvidia 24 hours a day, but that they allow securities assets to have Internet-native attributes for the first time—instant settlement, global circulation, programmability, and seamless integration with DeFi. Tokenization may not change the value of the stock itself, but it is redefining the way stocks are issued, held, traded, and circulated. When more and more stocks, bonds, funds, and even private equity assets are moved to the chain, people may look back at today’s tokenized U.S. stocks and find that it is not a new crypto narrative, but the first core puzzle for the global capital market to move to the chain.
[ChainCatcher]
Tokenized US Stock Duel: Ondo vs. xStocks in the Race to Define On-Chain Nasdaq
The tokenization of US stocks has emerged as one of the most significant developments in the Real World Assets (RWA) sector, creating a novel bridge between traditional finance and blockchain technology. As the market solidifies around two dominant players—Ondo and xStocks—we’re witnessing the early stages of what could become a fundamental transformation of securities markets.
Market Dynamics: Dueling Titans in Tokenized Stocks
Ondo and xStocks represent two divergent yet complementary approaches to tokenizing US equities and ETFs. While both anchor their tokens to real US stocks and ETFs at a 1:1 ratio through regulated custodians, their strategic paths couldn’t be more different.
Ondo, initially focused on structured yield products before pivoting to Treasury bonds and now tokenized stocks, has rapidly expanded to support over 260 tokenized assets with total value locked exceeding $3.70 billion. The recent unexpected death of founder and CEO Nathan Allman—formerly of Goldman Sachs’ digital asset division—has introduced leadership uncertainty at a critical juncture, though the transition to President Ian De Bode appears orderly.
xStocks, originating from Backed Finance and later acquired by Kraken, took an earlier market entry with over 60 tokenized stocks/ETFs on Solana. The Kraken integration has provided xStocks with significant liquidity advantages, evidenced by trading volumes for Tesla and Nvidia tokens that are 2-3x higher than Ondo’s comparable offerings. The recent announcement of a points program with potential airdrop expectations has further stimulated market activity.
Strategic Approaches: Infrastructure vs. Distribution
The fundamental divergence between these platforms lies in their strategic priorities. Ondo is pursuing the “Nasdaq” path, focusing on building comprehensive financial infrastructure. The acquisition of Oasis Pro was pivotal, granting them the ability to construct a complete securities issuance, registration, trading, and settlement system. Their partnerships with established financial institutions like Franklin Templeton and Broadridge—particularly the integration of shareholder governance and voting rights—demonstrate a concerted effort to become an institutional-grade securities platform.
In contrast, xStocks embodies the “Robinhood” approach, prioritizing user access, liquidity, and market reach. The Kraken ecosystem integration provides immediate access to a substantial user base and trading infrastructure, while their focus on European and Liechtenstein securities regulations offers a more standardized, scalable path to global expansion. This distribution-first strategy has resulted in superior trading volumes and market visibility in the short term.
Market Implications: Catalyst for Mainstream Adoption
The tokenization of US stocks represents a significant step toward mainstream blockchain adoption. With over $3.70 billion already locked in Ondo alone, this sector is establishing substantial market presence. The recent restrictions on US stock brokerage in several countries have created a tailwind for tokenized alternatives, potentially accelerating market growth.
For the broader crypto ecosystem, this development validates the RWA narrative and provides a tangible use case for blockchain technology beyond pure speculation. The ability to trade major stocks 24/7 with instant settlement and seamlessly integrate these assets into DeFi lending protocols and DEXs represents a paradigm shift in securities markets.
Token Price Analysis: Divergent Value Propositions
For investors considering exposure to this sector, the value propositions of Ondo and xStocks tokens differ significantly:
Ondo tokens appear to be more deeply tied to the platform’s growth as an infrastructure provider. Their strategic focus on institutional partnerships and regulatory positioning suggests longer-term appreciation potential if they successfully navigate the complex US securities landscape. However, the recent leadership transition introduces near-term uncertainty.
xStocks tokens derive more immediate value from their integration with Kraken’s ecosystem and the potential rewards from their points program. The higher trading volumes and liquidity advantages translate to tighter spreads and more efficient price discovery. The anticipated airdrop distribution may create short-term speculative interest but raises questions about long-term token utility beyond platform incentives.
Regulatory Minefield: Different Paths, Shared Challenges
Both platforms face significant regulatory hurdles, though their approaches differ. Ondo’s acquisition of Oasis Pro positions them to potentially navigate the complex US securities regulatory framework, which could provide a significant competitive advantage if successful. Their focus on compliance and institutional partnerships suggests they’re building for regulatory scrutiny.
xStocks’ reliance on European and Liechtenstein regulations offers a more immediate compliance framework but may limit their ability to directly serve US investors. This regulatory divergence creates both opportunities and constraints for each platform’s market expansion.
DeFi Integration: Unlocking Novel Financial Products
The true potential of tokenized stocks extends beyond simple trading. Their programmability enables novel financial applications that could revolutionize traditional markets:
- Collateral in DeFi lending protocols, unlocking liquidity for stock holders
- Integration into DEXs and cross-chain liquidity pools
- Automated investment strategies based on tokenized securities
- Fractional ownership of high-value stocks
- Dynamic ETFs with real-time rebalancing capabilities
Ondo’s focus on integration with traditional financial infrastructure suggests they may prioritize institutional-grade applications, while xStocks’ exchange integration could lead to more retail-focused DeFi use cases.
Risks and Considerations
Despite the promising outlook, investors must navigate several significant risks:
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Regulatory Uncertainty: The evolving regulatory landscape for tokenized securities presents substantial compliance risks. Changes in securities regulations could fundamentally impact these platforms’ operations.
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Counterparty Risk: While both platforms claim 1:1 asset backing, the reliance on custodians introduces counterparty risks that require careful due diligence.
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Market Fragmentation: As more players enter the tokenized securities space, liquidity could become fragmented across different platforms and protocols.
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Technological Vulnerabilities: Smart contract risks, oracle dependencies, and other technical challenges could impact the functionality and security of these platforms.
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Market Volatility: Tokenized stocks will track their underlying assets but may experience additional volatility due to crypto market dynamics.
Investment Outlook: Betting on the Future of Finance
For experienced crypto investors, the tokenized securities sector represents one of the most promising near-term catalysts for mainstream adoption. While both Ondo and xStocks have compelling value propositions, their different strategic paths suggest distinct risk-reward profiles.
Ondo’s infrastructure-focused approach potentially offers greater long-term upside if they successfully navigate US regulations and establish institutional-grade services. However, this comes with higher execution risk and near-term uncertainty following the leadership transition.
xStocks’ distribution-first strategy has already demonstrated superior trading volumes and market reach, supported by Kraken’s ecosystem. Their points program and potential airdrops may provide near-term speculative opportunities, though the long-term value proposition appears more dependent on continued exchange integration.
As the tokenization trend accelerates and more traditional assets migrate to blockchain infrastructure, the winner in this race may not be determined by which platform has more assets or higher trading volumes today, but rather by which builds the most robust, compliant, and integrated financial ecosystem for tomorrow’s hybrid capital markets.