Tokenized Stocks and ETFs in Self-Custody Wallets: A Paradigm Shift in Global Finance

The integration of tokenized real-world assets (RWAs) into self-custody wallets marks a seismic shift in global finance. By leveraging blockchain technology, platforms like Trust Wallet are dismantling barriers to traditional asset classes, democratizing access to U.S. stocks and ETFs, and redefining financial inclusion. This analysis explores how Trust Wallet’s partnerships with Ondo Finance and 1inch are catalyzing this transformation, with implications for cross-border investing, DeFi convergence, and long-term wealth diversification.

Trust Wallet’s RWA Integration: A New Financial Infrastructure

Trust Wallet’s 2025 launch of tokenized U.S. stocks and ETFs—powered by Ondo Finance and 1inch—represents the first cross-chain, self-custodial solution for RWAs. Users can now swap stablecoins like USDC for tokenized versions of major equities (e.g., Tesla, Apple) and ETFs (e.g., QQQ) with a minimum investment of $1, operating during U.S. market hours [1]. These assets are backed by third-party custodians and governed by Ethereum smart contracts, ensuring transparency and blockchain-based accountability [3].

Ondo Finance, a key enabler, has tokenized $1 billion in U.S. Treasuries and plans to expand to 1,000+ assets by year-end [5]. Meanwhile, 1inch’s Swap API provides liquidity and MEV-protected trading, addressing fragmentation in RWA markets [4]. This collaboration positions Trust Wallet as a bridge between traditional finance and DeFi, offering users seamless access to global markets without intermediaries.

Financial Inclusion: Expanding Access for the Next Billion

The disruptive potential of tokenized RWAs is most evident in emerging markets, where traditional financial systems often exclude large populations. Nigeria, Argentina, and Turkey—countries grappling with inflation and currency instability—have seen explosive growth in crypto adoption. Nigeria, for instance, has 84% Web3 wallet adoption among its online population, driven by the need for inflation hedges and cross-border transaction tools [1]. Similarly, Turkey and Argentina report 19.3% and 18.9% adoption rates, respectively [1].

Trust Wallet’s RWA features align with these trends. By enabling users to hold tokenized U.S. stocks and ETFs directly in self-custody wallets, the platform eliminates the need for traditional brokerage accounts, which are often inaccessible or prohibitively expensive. This is particularly impactful in regions where fractional ownership of high-value assets (e.g., real estate, commodities) is now possible via tokenization [5]. For example, users in Argentina can now access tokenized Tesla shares without navigating local banking restrictions, diversifying their portfolios against peso devaluation.

Cross-Border Investing: Breaking Geopolitical Barriers

Tokenized RWAs are inherently borderless. Unlike traditional stock markets, which operate within rigid regulatory and temporal constraints, blockchain-based assets enable 24/7 trading and instant settlement. Platforms like xStocks on Solana have already demonstrated this potential by tokenizing U.S. equities as SPL tokens, backed by Swiss-regulated custodians [2]. These tokens can be traded globally, with proceeds instantly converted into stablecoins or other digital assets.

Trust Wallet’s integration further amplifies this effect. By supporting Ethereum, Solana, and BNB Chain, the wallet facilitates cross-chain liquidity, allowing users to move tokenized assets between ecosystems. For instance, a Nigerian investor can purchase tokenized Apple shares on Ethereum, then transfer them to Solana for yield-generating DeFi protocols. This interoperability not only lowers transaction costs but also mitigates risks associated with local currency volatility.

DeFi Convergence: Tokenized RWAs as Collateral

The convergence of RWAs and DeFi is unlocking new financial primitives. Tokenized stocks and ETFs can now serve as collateral for stablecoin loans, liquidity provision, and yield generation. For example, users can deposit tokenized Tesla shares into DeFi platforms like Kamino to collateralize USDC loans, leveraging real-world assets for decentralized finance [1]. This blurs the line between TradFi and DeFi, enabling users to earn yields on traditionally illiquid assets.

Institutional players are also recognizing this potential. BlackRock and Franklin Templeton have begun exploring RWA tokenization, signaling a shift toward hybrid financial systems [6]. As of August 2025, the RWA tokenization market has grown to $26.59 billion, driven by tokenized government bonds and money market funds [3]. This growth is projected to accelerate as regulatory frameworks mature, particularly with the EU’s MiCA regulations and the U.S. GENIUS Act, which standardize stablecoin and tokenized asset oversight [5].

Long-Term Wealth Diversification: A New Asset Class

Tokenized RWAs are reshaping wealth management by introducing a new asset class that combines the transparency of blockchain with the stability of traditional assets. For emerging market investors, this means access to diversified portfolios that include U.S. equities, commodities, and real estate—all without the friction of traditional gatekeepers.

Fractional ownership is a key driver. A user in Nigeria can now invest in a tokenized share of a New York apartment building for as little as $10, whereas traditional real estate investment requires millions. This democratization of access is not just theoretical: RWA-backed stablecoins like USDY and USDM are already being used in Argentina and Turkey to preserve value against inflation while generating yield [4].

Challenges and the Road Ahead

Despite its promise, the RWA ecosystem faces hurdles. Regulatory uncertainty in the U.S. and EEA restricts access for 200 million Trust Wallet users [1]. Additionally, internet access and wallet literacy remain barriers in rural areas. However, the rapid adoption of mobile wallets—Africa’s crypto wallet users doubled to 75 million in 2025 [5]—suggests these challenges are surmountable.

The long-term trajectory is clear: tokenized RWAs will become a cornerstone of global finance. As institutional adoption grows and regulatory clarity improves, platforms like Trust Wallet will play a pivotal role in connecting billions to the next generation of financial tools.

Source

[1] Trust Wallet Brings Tokenized Stocks & ETFs Onchain for 200M Users Worldwide, [https://cryptoslate.com/press-releases/trust-wallet-brings-tokenized-stocks-etfs-onchain-for-200m-users-worldwide/]
[2] xStocks on Solana: Stock Tokenization and What It Means ..., [https://blog.quicknode.com/xstocks-solana-tokenized-stocks-2025/]
[3] RWA Industry Development Analysis Report, [https://www.chaincatcher.com/en/article/2201614]
[4] How RWA-Backed Stablecoins Are Reshaping Emerging ..., [https://www.linkedin.com/pulse/how-rwa-backed-stablecoins-reshaping-emerging-markets-kp5qc]
[5] Cryptocurrency Wallet Adoption Statistics 2025, [https://coinlaw.io/cryptocurrency-wallet-adoption-statistics/]
[6] SEC Opens Doors to On-Chain Securities as RWA Adoption Accelerates Across TradFi and DeFi, [https://www.linkedin.com/pulse/sec-opens-doors-on-chain-securities-rwa-adoption-accelerates-acre-4eepe]