Grayscale outlines three models for tokenized equities that could reshape capital markets

Grayscale has outlined a comprehensive framework for tokenized equities that distinguishes three distinct ownership models, each representing a different phase of blockchain adoption and catering to different market participants. This tiered approach reflects the current state of the tokenization landscape, where multiple models are simultaneously competing and complementing one another rather than following a single path to maturity.

The wrapper model currently dominates, accounting for more than 70% of tokenized stocks by market capitalization. In this structure, issuers hold equities in a Special Purpose Vehicle (SPV), and tokenized stocks represent a claim against that SPV rather than true ownership. While this model sacrifices direct ownership rights, it provides flexibility for participation in decentralized finance (DeFi) applications and appeals to retail investors. Wrapper-based tokens trade across multiple networks including Ethereum, Solana, and BNB Chain, providing accessibility across diverse blockchain ecosystems.

The entitlement model, exemplified by the DTCC's tokenization pilot program, represents the institutional infrastructure approach. Rather than creating new versions of securities, the DTCC brings existing eligible securities onchain through its regulated post-trade infrastructure, utilizing Canton Network as the first blockchain for its pilot. This model maintains regulatory compliance and integrates with existing financial plumbing while enabling onchain settlement and transparency benefits.

The issuer-sponsored model, where companies issue securities natively onchain, represents Phase 3 and carries the greatest long-term strategic potential according to Grayscale's analysis. This model requires additional regulatory clarity but is viewed as the endpoint for true tokenization. Securitize recently made headlines by becoming the first public company to tokenize its own common stock at the time of its NYSE listing, demonstrating early proof-of-concept for this approach. Ethereum and Solana, characterized as open-architecture blockchains, are viewed as particularly well-positioned for issuer-sponsored models, alongside hybrid networks like Avalanche.

Grayscale's broader assessment identifies five blockchain networks as best positioned to capitalize on tokenized equity growth: Ethereum, Solana, BNB Chain, Avalanche, and Canton Network. Each network's positioning reflects different strengths—from DeFi-friendly environments to regulated institutional infrastructure. The framework acknowledges that all three models will likely coexist for multiple years, implying a heterogeneous market structure rather than convergence toward a single standard.