Following the Coinbase tokenized stocks announcement, attention has turned to Ondo Finance ($ONDO) and Edel Finance ($EDEL) as two of the leading tokens in the sector. Among them, $EDEL appears to be a strong candidate for outsized returns as Coinbase begins driving mass adoption of tokenized stocks through its application, which serves more than 100 million active users.
Demand from traders for on-chain equity access continues to grow, driven by the promise of faster settlement, improved liquidity, global accessibility, and more efficient capital usage enabled by blockchain technology.
This interest is underpinned by long-term market projections. A joint report from Ripple and Boston Consulting Group estimates the tokenized asset market could reach approximately $18.9 trillion by 2033, highlighting the potential upside for early movers able to capture meaningful market share.
“As platforms like Coinbase expand access, the next phase of tokenization is about utility,” said Andrés Soltermann, CEO of Edel Finance. “Lending and borrowing are what turn tokenized stocks into real financial instruments.”
If Edel Finance succeeds in delivering a secure and user-friendly lending and borrowing solution, the project’s native $EDEL token could benefit directly from rising demand for tokenized stocks.
Coinbase and Ondo Finance Make Major Tokenization Announcements
The Coinbase announcement is part of the exchange’s broader push to develop an “everything app,” where traders can access a wide range of assets in tokenized form.
According to CoinDesk, Max Branzburg, Head of Consumer and Business Products at Coinbase, said that the tokenized stocks feature will allow users to trade hundreds of leading equities at launch, with additional stocks and products added over time.
In parallel, Ondo Finance ($ONDO) has also made a significant move in the tokenization space. The project, which has already established itself as a key player in on-chain real-world assets, continues to expand its product suite beyond its existing offerings.
Ondo recently announced plans to launch Solana-based tokenized assets and exchange-traded fund (ETF) trading next year. This expansion builds on Ondo’s broader tokenization strategy, which already includes on-chain U.S. Treasury products designed for institutional and professional investors.
Together, Coinbase and Ondo Finance are committing substantial resources to the tokenization market and are expected to play central roles in its development. However, Edel Finance could emerge as a critical pillar for traders and investors by applying an Aave-style lending and borrowing model specifically to tokenized stocks.
Edel Finance: The Aave of Tokenized Stocks
The Edel Finance testnet went live earlier this week, marking a major milestone in the project’s ambition to bring lending and borrowing to tokenized equities. The objective is rooted in the vision of a fairer stock market, where users receive the interest generated by their holdings and gain the ability to borrow stocks using on-chain collateral.
“Edel is effectively building the Aave of tokenized stocks by applying proven DeFi lending mechanics to equities, allowing stocks to be lent, borrowed, and collateralized on-chain transparently and efficiently,” said Andrés.
Like DeFi lending protocols, Edel enables users to earn yield by lending assets, borrowing against collateral, and accessing liquidity without selling long-term positions. The key distinction is that Edel adapts these models specifically for tokenized equities rather than cryptocurrencies.
The testnet launch demonstrates how this approach works in practice, allowing traders to interact with tokenized stocks, explore lending and borrowing strategies, and experience first-hand how on-chain equity markets could function at scale.
It’s worth noting that Edel is not competing with Ondo. In fact, Ondo Finance is one of Edel’s partners. Instead, Edel is building on the tools developed by Ondo to offer traders a valuable way to generate passive returns from their tokenized stock portfolios.
$EDEL: A Utility-Focused Tokenization Token
$EDEL is the native token within the Edel Finance ecosystem. It provides utility and access to the platform’s lending and borrowing features while offering traders exposure to the protocol’s potential growth. During the testnet period, $EDEL is already being used to purchase mock stocks, allowing users to gain a clear understanding of how Edel will function once the full product is launched.
$EDEL tokenomics. Source: Edel Finance
Final Thoughts
Over 1,500 users are already operating on the Edel Finance testnet. The team appears to have tapped into demand for a lending and borrowing solution for tokenized stocks and delivered a testnet product that functions as expected. At the same time, announcements from Coinbase and Ondo Finance have further driven positive sentiment around the tokenization of equities, potentially expanding Edel Finance’s future user base and increasing demand for tokenization-linked crypto assets such as $ONDO and $EDEL.
FAQs
How do Ondo Finance and Edel Finance differ in the tokenized stocks ecosystem?
Ondo Finance focuses on issuing and structuring tokenized assets such as Treasuries and planned ETFs, while Edel Finance provides lending and borrowing infrastructure that allows those assets to be used for yield generation and collateralized trading.
Why are traders paying attention to both Ondo Finance and Edel Finance?
Ondo brings traditional financial instruments on-chain in a compliant format, while Edel enables financial activity such as lending and borrowing. Together, they represent different but complementary layers of the tokenized equities market.
What are the main use cases for tokenized stocks today?
Current use cases include on-chain ownership, faster settlement, lending for yield, borrowing against equity holdings, and portfolio diversification. As infrastructure matures, these assets are increasingly used beyond simple buy-and-hold strategies.
