Grayscale Identifies Top 5 Blockchain Networks for Tokenized Stocks

Grayscale has identified five blockchain networks that are well-positioned to gain from the increasing adoption of tokenized stocks in traditional finance. The asset manager named Ethereum (ETH), Solana (SOL), Avalanche (AVAX), BNB Chain, and Canton Network as the top contenders.

The framework for tokenized equities is developing rapidly, with three models emerging: the wrapper model, the entitlement model, and issuer-native shares. According to Grayscale's research note, 70% of tokenized stock value today uses the wrapper model, where a token represents shares held in an SPV.

Grayscale expects all three models to coexist for years, with the issuer-native model being the most promising. However, the company notes that tokenized market liquidity remains thin and rules are still unclear.

The DTCC pilot on Canton Network is a notable example of the entitlement model, which brings existing securities on-chain through regulated rails. The pilot has significant backing from major players in the industry, including Euroclear.