Tokenized equities can now be used as collateral in DeFi lending markets, unlocking liquidity without selling.
With tokenized stocks approaching $1 billion in value and increasing demand for this new tokenization class, we’re excited to share that Sentora Tokenized Equity Yield (STEY) is now live.
STEY enables tokenized public equities to access decentralized lending markets in a way that’s actually usable at scale, unlocking liquidity and potential yield without selling the equity position and giving up exposure to the underlying stock.
This launch is powered by a collaboration with Ondo Finance, Chainlink, and Euler: three partners that, together, complete the core stack required for tokenized equities to work inside DeFi markets.
The three building blocks that make tokenized equities usable in DeFi
Retail investors hold enormous value in public equities, but those assets are typically static once purchased. Selling assets can take days to settle, comes with fees and friction and you lose the upside if the stock runs after you exit.
STEY is designed around a simple idea: tokenization should make equities more useful without forcing investors to leave the position. STEY integrates three critical components in order to solve this challenge:
1) Deep, reliable liquidity — via Ondo
Ondo’s tokenized stocks and ETFs are designed to inherit liquidity from traditional equity venues. That matters because collateral only works if liquidation is efficient: fast execution, minimal slippage, and clean unwind dynamics.
2) Institutional-grade, real-time pricing — via Chainlink
Accurate pricing is non-negotiable for equities collateral. Chainlink Data Feeds are now live for Ondo tokenized equities and integrated in STEY, delivering high-integrity pricing tailored specifically for these assets. Each feed reflects the full economic reality of the underlying security, so positions can be priced and managed with precision.
3) A lending venue with professional risk parameters — live on Euler
Lending support for tokenized equities is now live on Euler. Users can supply tokenized equities and borrow stablecoins against them, all via non-custodial vaults, marking early validation that tokenized stocks can function as robust, risk-managed collateral alongside crypto-native assets.
Risk-managed markets designed for scale
STEY delivers continuous, asset-level risk oversight for tokenized equities markets.
Our solutions monitor these markets continuously to ensure the markets stay resilient through changes in liquidity, volatility, and market structure. The architecture is modular and risk-isolated by design, creating a reliable path to introduce tokenized equities into DeFi at scale.
Under the hood, STEY is powered by Sentora’s Smart Yield platform, which orchestrates automated strategies and manages risk across DeFi venues. We partner with exchanges, fintechs, neobanks, and DeFi platforms that own the end-user experience so these capabilities can be accessible to retail investors in a seamless way.
What STEY unlocks
- Liquidity without selling tokenized equity positions
- A new collateral class for DeFi lending markets
- A credible risk framework that institutions can get comfortable with
- A practical bridge between equity ownership and onchain capital efficiency
Tokenized equities shouldn’t just exist onchain — they should do something onchain. STEY is our step toward making that real.
Learn more
To see how tokenized stocks can be used within decentralized finance markets, visit:
https://sentora.com/solutions/tokenized-equity-yield-stey
This content is for informational purposes only and should not be considered financial, investment, or legal advice. STEY is not a financial product or financial service and is provided solely as a non-custodial, DeFi-enabled technology solution with no guarantees of performance or availability. Access may be restricted in certain jurisdictions or to certain users.
Announcing STEY: Sentora Tokenized Equity Yield was originally published in Sentora on Medium, where people are continuing the conversation by highlighting and responding to this story.
