Ethereum Wins Institutional Money. BNB Chain Gets Tokenized Stocks.  

Ethereum is becoming the institutional home for tokenized funds. But when it comes to tokenized stocks, BNB Chain is taking the lead.

Ethereum attracted a growing share of institutional money through tokenized U.S. Treasury funds in the second quarter of 2026, with their average market capitalization reaching a record $7.5 billion, up 55.7% from the previous quarter, according to the Token Terminal’s Ethereum Q2 2026 report.

But Ethereum’s dominance is not extending across every tokenized-asset market. BNB Chain overtook Ethereum in tokenized stock market value in late July and remained ahead through September, highlighting a growing split between the blockchain’s strong position in institutional funds and its weaker lead in tokenized equities.

The growth in tokenized Treasuries was driven largely by regulated asset managers expanding their footprint on Ethereum. 

Franklin Templeton's onchain liquidity fund, Ondo Finance's USDY, and BlackRock's BUIDL fund each surpassed $1 billion on Ethereum by quarter's end. Franklin Templeton's fund roughly quadrupled in size, while USDY roughly doubled over the period.

J.P. Morgan launched JLTXX, its second tokenized money market fund on Ethereum, with $100 million in May. Backed by U.S. Treasuries and overnight repurchase agreements, the JLTXX fund grew to $682.2 million by the end of Q2 and surpassed $800 million by early September. 

Treasury bill funds increased their share of Ethereum’s tokenized fund market from 24.5% in the first quarter to 36.3% in the second. 

Ethereum also accounted for 67.6% of the combined tokenized fund market across the five largest blockchains—more than twice the share held by the other four networks combined.

Tokenized stocks remain the smallest tokenized asset category, according to Token Terminal’s report. On Ethereum, their market value reached $614.6 million in Q2, up 68.2% from the previous quarter.

However, the market grew faster across other blockchains, where tokenized stock value rose by roughly 81%. As a result, Ethereum’s share fell to 41.2%—its smallest lead among the asset categories covered by the report.

BNB Chain overtook Ethereum in tokenized stock market value in late July and remained ahead through September.

According to Token Terminal, partnerships that bring tokenized stocks to investors are now more important in determining market share than the underlying blockchain technology. Ethereum retains a stronger structural advantage in categories such as stablecoins, tokenized funds and commodities, where its deep liquidity plays a larger role.

Ethereum’s fully diluted market capitalization fell 14.8% from the previous quarter, marking its third consecutive quarterly decline. 

Meanwhile, the network’s total value locked (TVL) dropped 9.2%, even as transaction activity and network throughput reached record highs. 

The staking ratio also climbed to a record 0.32x, while the number of addresses holding ETH hit an all-time high. 

Ethereum’s strength in tokenized Treasuries shows that traditional financial firms are becoming more comfortable using public blockchains for regulated assets. 

But BNB Chain’s lead in tokenized stocks shows that institutional adoption is not guaranteed to concentrate on one network, with partnerships, distribution and the type of asset also shaping where the money goes.

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