Entities incorporated outside the United States issue 90.4 percent of the $3.7 billion tokenized stock market, with Jersey leading at 28.9 percent, Abu Dhabi at 27.4 percent and the British Virgin Islands at 26.3 percent.
The concentration underscores a regulatory arbitrage: issuers are routing tokenized equity through jurisdictions offering clearer frameworks or more flexible structures for digital asset issuance than the U.S. presents.
Tokenized stocks enable fractional ownership and 24/7 settlement via blockchain rails, typically through a legal wrapper that links the on-chain token to the underlying share. The market represents a specific segment within broader real-world asset tokenization, which has attracted significant stablecoin liquidity and now spans tokenized Treasuries, corporate bonds, and commodities across multiple protocols managing billions in TVL.
The offshore concentration fragments global liquidity for equity tokens. U.S.-based investors face access restrictions, while on-chain capital formation for equity products proceeds along parallel rails rather than consolidating in a single dominant venue.
