Grayscale Identifies 5 Crypto Networks Positioned to Benefit From Tokenized Equities

Grayscale’s Tokenization Outlook Depends connected Which Ownership Model Wins

Crypto plus manager Grayscale published probe connected July 9 outlining 3 phases of equity tokenization. Head of Research Zach Pandl said Ethereum, Solana, BNB Chain, Avalanche, and Canton Network are champion positioned to payment arsenic ownership models evolve.

The archetypal signifier involves third-party wrappers, which relationship for much than 70% of tokenized stocks by marketplace capitalization, according to Grayscale. Under this model, accepted shares are placed into a special-purpose conveyance (SPV), and investors person tokens representing claims connected that conveyance alternatively than nonstop ownership.

These wrapped assets run connected Ethereum, Solana, and BNB Chain, wherever they tin beryllium traded and integrated into decentralized finance applications. Pandl said each signifier of tokenization could payment antithetic blockchain infrastructure.

DTCC Pilot and Issuer-Sponsored Shares Could Reshape Blockchain Roles

Grayscale identifies the Depository Trust & Clearing Corporation (DTCC)’s planned aviator arsenic the 2nd signifier of tokenized equity development. Noting that Canton Network volition beryllium the archetypal blockchain utilized successful DTCC’s tokenization pilot, Pandl wrote:

“We spot the tokenization of equity markets progressing successful 3 phases, with each signifier driving worth to antithetic types of blockchain infrastructure.”

DTCC plans to bring existing eligible securities onchain done regulated post-trade infrastructure alternatively than contented replacement versions. Grayscale describes this attack arsenic the entitlement model, which differs from wrapper-based systems that make claims done abstracted vehicles.

The probe says the aviator whitethorn assistance specify Canton Network’s relation alongside nationalist blockchains supporting tokenized assets.

Could Companies Eventually Issue Shares Directly connected Blockchain Networks?

Grayscale describes issuer-sponsored tokenization arsenic the 3rd phase, wherever companies contented securities natively onchain. The study says Securitize became the archetypal nationalist institution to tokenize its ain communal banal astatine the clip of its New York Stock Exchange listing.

The crypto plus manager believes this exemplary has the top semipermanent imaginable and could favour Ethereum, Solana, and Avalanche. Wider adoption inactive requires further regulatory clarity.

The caput of probe stated:

“The blockchain networks champion positioned to capitalize connected the maturation successful tokenization include, successful our view, Ethereum, Solana, BNB Chain, Avalanche, and Canton Network.”

Grayscale expects wrappers, DTCC’s entitlement model, and issuer-sponsored issuance to coexist for years. The semipermanent organisation of enactment among Ethereum, Solana, BNB Chain, Avalanche, and Canton Network remains uncertain. Regulatory developments, issuer adoption, and palmy implementation volition find which networks seizure the top relation successful integer securities markets.