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Digital Assets · Offshore Markets · Tokenization · US Regulation
Offshore tokenized stock platforms, notably Kraken xStocks and ONDO Global Markets, have rapidly accumulated nearly $700 million in total value locked since July 2025, compelling US markets to accelerate their adoption of digital asset innovation.
The "tokenization of everything" concept, pioneered by Blockchain Capital in 2013 and Securitize in 2017, faced early challenges with illiquidity and negative selection, as seen with tZERO's STO in 2018 and ARCA's ArCoin in 2020. However, recent successes like Franklin's BENJI ($900M AUM) and BlackRock's BUIDL (nearly $2B AUM) tokenized money funds, which serve as critical collateral, demonstrate renewed viability.
Figure's SEC-registered, interest-bearing stablecoin YLDS, holding $375 million, also highlights progress. Kraken and ONDO's "wrapped tokenizations" of US stocks, such as NVDAx and NVDAon, operate outside US regulations, offering 24/7 trading and DeFi integration to offshore investors despite potential fungibility and cost drawbacks.
ReserveOne President/CIO Sebastian Pedro Bea asserts this offshore momentum signals an urgent need for US markets to embrace similar innovation.
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