Grayscale: The Three Major Evolution Stages...｜Canton Network, tokenized stocks

Grayscale Research has published a comprehensive framework outlining three major evolutionary phases for global stock tokenization, a process accelerating rapidly as institutional capital markets migrate assets onto blockchain infrastructure. The market demonstrates extraordinary growth momentum: tokenized stock values increased nearly fourfold from approximately $600 million in January 2026 to over $2.2 billion within six months by July 2026, indicating institutional adoption is moving beyond exploratory pilots into meaningful deployment.

The three-phase evolution positions different blockchain architectures for leadership at different timescales. In the near term, institution-centric networks like Canton Network are expected to lead adoption because they closely mirror existing financial system infrastructure, incorporate privacy protections by default, and satisfy regulatory requirements institutional actors demand. Canton has secured the most significant validation to date: selection by the Depository Trust & Clearing Corporation (DTCC) for Phase Two of its stock tokenization pilot program, where it will operate an entitlement model structure. This institutional endorsement reflects Canton's suitability for capital markets' near-term tokenization needs. Grayscale has capitalized on this positioning by filing for a Canton ETF that would provide investors direct exposure to the Canton Network's CC native token.

Longer term, Grayscale Research expects the tokenization megatrend to migrate toward decentralized, fully permissionless public blockchains. Ethereum and Solana lead this category and are identified alongside BNB Chain and Avalanche as networks best positioned to benefit from tokenization growth as the market matures. These open networks offer broader architectural possibilities for reimagining capital markets infrastructure, though they require continued development of privacy and identity tools currently available natively on institution-focused chains.

The current market structure reveals concentrated leverage through wrapper tokens, which hold over 70% of tokenized stock market capitalization. This concentration is expected to redistribute across phases as native tokenization models emerge and institutional adoption deepens. Zach Pandl, Head of Research at Grayscale, has identified a cross-network opportunity: infrastructure protocols like Chainlink may benefit across all three phases regardless of which blockchain emerges dominant, given tokenized capital markets will require reliable oracle and data infrastructure independent of settlement layer selection.