On-Chain Access to U.S. Stocks and ETFs: DeFi’s Institutional-Grade Revolution

The convergence of decentralized finance (DeFi) and traditional capital markets is accelerating, driven by institutional-grade participation and innovative on-chain solutions for U.S. stocks and ETFs. As blockchain infrastructure matures and regulatory frameworks evolve, platforms are dismantling barriers between on-chain ecosystems and real-world assets (RWAs), unlocking unprecedented liquidity and accessibility. This analysis explores the mechanisms, adoption metrics, and institutional dynamics shaping this transformative trend.

DeFi Platforms Pioneering On-Chain Access

Several DeFi protocols have emerged as key enablers of on-chain access to U.S. equities and ETFs. Trust Wallet, Binance’s self-custodial wallet, has integrated tokenized versions of U.S. stocks and ETFs through partnerships with Ondo Finance and 1inch. This collaboration allows global users to trade assets like Apple or S&P 500 ETFs directly on-chain, bypassing traditional brokerage constraints [2].

Ondo Finance has further expanded this model via Ondo Global Markets, a platform tokenizing U.S. stocks and ETFs in partnership with Alpaca, a self-clearing broker-dealer. By leveraging Alpaca’s regulatory compliance and Ondo’s DeFi infrastructure, the platform addresses high fees and limited access in traditional markets [4]. Meanwhile, Galaxy Digital and Superstate have tokenized Galaxy’s SEC-registered shares on Solana, marking a milestone in institutional-grade on-chain capital markets [3].

Chainlink’s Data Streams for U.S. equities and ETFs provide real-time market data on-chain, enabling accurate price feeds for tokenized assets. This infrastructure is critical for maintaining trust and transparency in DeFi-native financial products [5].

Institutional Participation and AUM Growth

Institutional adoption of on-chain U.S. stock and ETF platforms has surged, particularly on Solana, where tokenized RWAs now exceed $23.92 billion in total value [6]. Major institutions like BlackRock and Franklin Templeton have launched tokenized products on Solana, attracted by its scalability and low transaction costs [2].

DeFi Technologies Inc. reported a 23% increase in assets under management (AUM) for its Valour division, reaching $947 million by July 31, 2025, driven by institutional inflows and regulatory clarity [3]. Similarly, Aave, the leading DeFi lending protocol, has captured 60% of the DeFi lending market, with TVL growing 52% in Q2 2025 to $25.41 billion [1].

The U.S. GENIUS Act and the EU’s MiCA regulation have further catalyzed institutional participation by providing legal frameworks for tokenized assets. For instance, VanEck, Galaxy, and Bitwise have filed for Solana-focused ETFs, signaling growing confidence in the chain’s infrastructure [6].

Regulatory Tailwinds and Market Dynamics

Regulatory clarity is a linchpin for institutional adoption. The GENIUS Act (Global Exchange for Innovation, New Use, and Security) aims to streamline the tokenization of securities, while MiCA (Markets in Crypto-Assets) in the EU establishes harmonized rules for crypto products. These frameworks reduce compliance risks, enabling institutions to allocate capital to on-chain assets with greater confidence [6].

Moreover, high-interest-rate environments have pushed institutions to seek higher-yielding alternatives. Tokenized U.S. treasuries, for example, have seen a 7,400% increase in value since 2022, reflecting demand for yield-generating RWAs [2].

Challenges and Future Outlook

Despite rapid growth, challenges persist. Solana’s DeFi activity dipped 44.2% in Q2 2025 due to reduced memecoin speculation, though TVL still rose 30.4% to $8.6 billion [3]. This highlights the need for sustainable use cases beyond speculative trading.

However, the trajectory is clear: on-chain access to U.S. stocks and ETFs is no longer a niche experiment but a mainstream financial infrastructure play. As institutional AUM and TVL metrics continue to climb, DeFi platforms that bridge traditional and decentralized markets will likely dominate the next phase of crypto adoption.

Source

[1] Aave is growing in DeFi dominance, [https://www.21shares.com/pt/research/aave-is-growing-in-defi-dominance]
[2] RWAs on Solana: The Institutional Onchain Bet | by Khushi, [https://medium.com/@smilewithkhushi/rwas-on-solana-the-institutional-onchain-bet-3e4b4a78d979]
[3] DeFi Technologies Posts $32.1M Revenue in Q2 2025, AUM Grows 23%, [https://phemex.com/news/article/defi-technologies-posts-321m-revenue-in-q2-2025-aum-grows-23_15074]
[4] Ondo Finance and Alpaca Collaborate to Tokenize US Stocks and ETFs, [https://www.innovationopenlab.com/news-biz/56578/ondo-finance-and-alpaca-collaborate-to-tokenize-us-stocks-and-etfs.html]
[5] Chainlink Launches Data Streams for U.S. Equities and ETFs, [https://blog.chain.link/chainlink-data-streams-us-equities-etfs/]
[6] Wall Street's Crypto Shift: Tokenized Assets Surge in 2025, [https://phemex.com/blogs/wall-street-tokenized-assets-rwa-2025]