As part of its latest weekly analysis, Coin Metrics explores the expanding ecosystem of tokenized equities, mapping out how different structures deliver exposure to traditional stocks on blockchain networks. Using Nvidia (NVDA) as a detailed case study, the research report from Coin Metrics highlights a clear spectrum of approaches that balance ownership rights against accessibility and efficiency.
Tokenized stocks today fall into three primary categories. At one end sits issuer-native equity, which provides direct ownership of a registered security along with full shareholder rights.
Next comes custodial wrapped equity, which delivers economic exposure through a wrapper backed by the underlying shares held in custody, but without voting rights or direct ownership.
At the other end are derivative exposures, such as perpetual futures contracts, which offer pure price tracking with no claim on the actual asset.
Moving along this spectrum involves deliberate trade-offs. Greater simplicity, capital efficiency, and ease of use come at the expense of direct legal claims and shareholder privileges.
These structural differences directly influence how the instruments behave in practice, including pricing alignment, liquidity patterns, and trading activity.
The report notes growing institutional momentum in the space.
Recent developments include the DTCC’s tokenized securities pilot program, the New York Stock Exchange’s work on a dedicated platform for tokenized stock trading, and Coinbase’s launch of 1:1 backed tokenized U.S. equities.
The SEC has also begun formalizing its views on these instruments, adding regulatory clarity as more issuers and structures enter the market.
Nvidia serves as an ideal lens because the company’s shares now appear on-chain in multiple forms, even though native on-chain issuance has not yet occurred.
Two prominent custodial wrapped products stand out: Backed’s NVDAx and Ondo’s NVDAON.
Backed’s NVDAx is issued through a Jersey-registered special purpose vehicle under Liechtenstein regulations as tracker certificates. It is backed one-to-one by more than 431,000 Nvidia shares (roughly $90 million in market value).
The token, available as an ERC-20 on Ethereum and SPL on Solana, provides total return exposure through a rebasing mechanism that adjusts holdings for stock splits and dividends.
Holders gain transferable economic exposure and DeFi composability but must complete KYC processes for any redemption into the underlying shares.
Ondo’s NVDAON operates similarly on Ethereum, backed by approximately 95,000 Nvidia shares through a British Virgin Islands SPV structured as a total-return note.
While the economic exposure is broadly comparable, differences in legal entities, custody arrangements, and separate liquidity pools lead to occasional price divergences between the two tokens.
These gaps create arbitrage opportunities for traders who can buy the lower-priced token and sell the higher-priced one.
On-chain transfer and trading activity varies notably between the products and chains.
NVDAx transfers on Solana show a high median value of around $1.7 million, while Ethereum activity remains much lighter at a median of roughly $4,000 per day.
Both tokens see peak trading volumes during U.S. market hours (roughly 13:00–15:00 UTC).
However, NVDAON exhibits relatively stronger activity during European and Asian sessions, whereas NVDAx records higher weekend participation relative to its weekday average.
Perpetual futures on platforms such as Hyperliquid and Binance dominate on-chain Nvidia activity by a wide margin.
These cash- or stablecoin-settled contracts require no custody of the underlying shares, making them far simpler and faster to scale.
Average Monday-to-Friday volumes reach approximately $154 million, with weekend volumes around $29 million, producing more than $6.3 billion in total trading volume across venues—over 40 times the volume seen in the tokenized spot markets.
This volume advantage stems from the simplicity of derivatives: traders gain continuous price exposure and DeFi composability without issuer structures, redemption mechanics, or custody requirements.
In return, they forgo any direct claim on the underlying shares.All models share one key advantage over traditional equity exposure: continuous on-chain price discovery.
This enables 24/7 pricing and supports composability with other protocols, independent of conventional market hours.
The research report concludes that tokenized equities remain an early-stage but rapidly evolving segment.
A single stock like Nvidia can now exist simultaneously as a registered security, a custodial token, and a perpetual contract, each offering a distinct mix of rights, accessibility, and market dynamics.
Pricing fragmentation and liquidity differences between models are natural outcomes of these structural choices, while perpetual futures currently lead in volume and ease of use.
As the market matures in 2026, participants will need to evaluate each product carefully based on the specific type of exposure and rights it provides. Coin Metrics has now concluded that the diversity of approaches reflects ongoing innovation at the intersection of traditional finance and blockchain technology.
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