Tokenized Stock Market: Jersey, BVI, UAE Lead the Charge

The lion’s share of the tokenized stock market’s value is concentrated in just three offshore jurisdictions: Jersey, the British Virgin Islands (BVI), and the United Arab Emirates (UAE). This concentration is significant because tokenized equities are a rapidly expanding segment of the real-world asset (RWA) market, and the legal domicile of these products dictates regulatory oversight, investor access, and recourse in case of issues.

As of mid-September 2026, major issuers such as Ondo, Kraken’s xStocks, and Binance bStocks collectively account for approximately 81% of the total distributed tokenized equity value, which stands at roughly $2.93 billion.

The Offshore Hubs of Tokenized Equities

A tokenized stock is essentially a blockchain token designed to represent ownership of a real-world share. Leading issuers typically structure these products through offshore special purpose vehicles (SPVs). An SPV is a distinct legal entity established for a specific, limited purpose – in this case, to hold the underlying shares and issue tokens that are backed on a 1:1 basis.

These SPVs are predominantly established in three key jurisdictions: the BVI, Jersey, and the Abu Dhabi Global Market (ADGM) in the UAE.

Jersey Leads by Market Value

Jersey has emerged as the frontrunner in terms of market value. Data compiled by RWA.xyz as of September 2026 indicates that products domiciled in Jersey hold approximately 27.4% of the tokenized equity market, valued at around $651.4 million.

BVI Dominates in Issuance Volume

While Jersey leads by value, the BVI takes the lead in the sheer volume of tokenized securities issued. As of June 2026, entities based in the BVI had launched 305 tokenized securities, the highest number recorded for any single jurisdiction.

ADGM Attracts Exchange-Sponsored Products

The UAE’s ADGM has carved out a distinct niche, becoming a favored hub for tokenized stock products sponsored by exchanges. Binance bStocks, launched in June 2026, is one such example. The ADGM’s appeal lies in its English common law framework, which has proven attractive to exchanges and institutional investors alike.

Single Stocks Outpace ETFs

Single stocks constitute about 81% of the current tokenization supply for equities, with exchange-traded funds (ETFs) lagging significantly behind. This preference for individual company shares over diversified funds suggests that investors are seeking targeted exposure to specific corporate entities.

Binance Research reports that the broader tokenized RWA market, encompassing equities, tokenized Treasuries, and other asset classes, has experienced a substantial surge of approximately 390% year-to-date.

The Legal Framework and Investor Implications

Encapsulating shares within an offshore SPV provides issuers with a clear legal structure that acts as an intermediary between the custodied shares and the token holder. Jersey has secured the leading market share, the BVI leads in the number of issuances, and the ADGM offers a familiar and workable common law environment for exchanges and institutions.

For investors holding tokenized stocks, their claim typically resides with the SPV in one of these offshore jurisdictions, rather than directly with the company whose shares are being tracked. Consequently, the issuer’s structure, custody arrangements, and the governing law are integral components of the investment itself. Two tokens representing the same company could therefore carry different legal implications depending on their jurisdiction and method of issuance.

The concentration of roughly 81% of the distributed value within a limited number of issuers and just three jurisdictions means that any regulatory changes in these key hubs could have a widespread impact across the entire sector. Jersey leads in value, the BVI in issuance volume, and the ADGM is attracting significant exchange-backed initiatives like bStocks, with each jurisdiction actively competing for the same pipeline of tokenized products.