Tokenized equities gain real onchain liquidity

What happened: Mantle, an Ethereum layer-2 network, launched xStocks on March 31, 2023, in collaboration with Bybit, BackedFi, and Flowdesk, providing tokenized versions of major equities on its Fluxion exchange. Concurrently, Coinbase introduced tokenized share classes for its new digital credit fund, Coinbase Stablecoin Credit Strategy, on April 5, 2023. Ondo, seeking SEC clearance, is developing an Ethereum-based tokenized equities model.

Market impact: These developments drive liquidity and accessibility in tokenized equities, benefiting decentralized finance (DeFi) platforms and investors. They also push traditional financial services providers like Coinbase further into the crypto space. Regulatory clarity from the SEC on Ondo's model could boost confidence in tokenized equities, potentially attracting more institutional investors.

What to watch next: On April 20, 2023, Coinbase reports Q1 earnings, which may reflect growing interest in its digital credit fund. The SEC's decision on Ondo's tokenized equities model, expected in Q2 2023, will significantly impact the narrative's evolution. Additionally, monitor trading volumes and user activity on Mantle's xStocks to gauge real onchain liquidity.