Tokenized Equities, Kamino RWAs and zachXBT Investigation

Deep dive into tokenized equities, RWAs and on-chain market mechanics — liquidity, fees, custody risks, and real-world product tradeoffs.

Key Takeaways

Tokenized equities scaled to about $250M TVL, enabling new access outside brokerages; major issuers (Superstate, Ondo, XDOCS) differ in structure and rights—XDOCS act as debt, lacking voting/dividends.
On-chain liquidity is thin: tokens don’t track one-to-one, incur tracking fees and slippage (roughly ~1% on large $100k buys); RFQ, prop-AMMs and 24/7 trading can reduce spreads for big trades.
Camino’s modular RWA markets exceeded $1B deposits; tokenized deposits and RWAs are ~35% of its market, with stablecoin borrows looped to earn uncorrelated private-credit yields.
Yield is shifting from traditional DeFi to private credit, mortgages and reinsurance; money markets and looping enable levered yield while perps serve directional leverage needs.
Users tolerate higher fees and prefer simple frontends; recurring 1–2% fees compound into meaningful lost gains, but inertia, apathy and switching costs keep volumes concentrated.
KYC/whitelists and issuer rules limit secondary trading and provider interoperability; interchangeability and new on-chain use cases will determine provider stickiness.
Tokenized volume is concentrated—gold (~30%) and pre-IPO equities lead; illiquidity and speculative crypto pricing on private stocks create volatility and anchoring challenges.