Reality Teams Up with Merkl for rToken Dividend Payments in DeFi

Streamlining Dividend Distributions

In a significant move for decentralized finance (DeFi), Reality, a tokenization platform that integrates public equities with blockchain technology, has formed a partnership with Merkl. This collaboration aims to recognize and reward eligible holders of rTokens engaged in various DeFi protocols, ensuring they receive dividend payouts in stablecoins.

Understanding rTokens

rTokens are innovative digital assets that provide tokenized access to publicly traded stocks and exchange-traded funds (ETFs), allowing holders to enjoy economic benefits like dividends. However, when these tokens are utilized in DeFi—deployed in lending markets, liquidity pools, or staking contracts—determining the rightful recipients of dividend payments can be complex. This is due to the opacity created by smart contracts, which may mask individual ownership.

Merkl's Innovative Solution

Merkl's reward forwarder technology offers a solution by tracking token ownership through these complex DeFi setups. It can identify the underlying holders of rTokens by analyzing supported smart contracts and distributing dividends according to established rules. The technology not only accounts for different layers of DeFi contracts but also takes into consideration any protocol-specific fees that might apply.

“The challenge with assets held in DeFi is knowing who sits behind each position,” commented Pablo Veyrat, CEO and Co-founder of Merkl. “Our forwarder technology traces ownership through nested smart contracts and tells Reality exactly who holds what, ensuring dividends go to the right people wherever their tokens are deployed.”

Enhancing Practicality for Tokenized Equities

Gracy Chen, CEO of Bitget, emphasized the importance of tokenized equities functioning beyond mere trading. “If someone puts their rTokens to work in DeFi, they should still be able to receive the dividends they’re eligible for,” she stated. “Working with Merkl helps us address that challenge, making tokenized equities more practical for everyday use.”

Operational Insights

Within this partnership, Reality is set to oversee the issuance of rTokens and the entitlement to dividends, while Merkl will supply the necessary infrastructure to identify those eligible holders across various DeFi platforms. Notably, Reality's model allows for the distribution of cash dividends independently from the rToken price, with these dividends typically settled in USDT. However, the distribution will depend on the particular DeFi contracts supported and the applicable rules in place.

Growing Adoption of rTokens

The initiative supports the expanding adoption of rTokens within Bitget’s UEX ecosystem. Recent statistics from a DeFiLlama report reveal that rToken trading volume reached a staggering $1.16 billion during June and July, reflecting a 23.54% month-over-month growth in user transactions during July 2026. This surge highlights a growing interest in tokenized equities that align with broader cross-asset investment strategies.

About Reality

Reality operates as a regulated platform for issuing real-world assets, facilitating their integration into global markets. Being a part of the Bitget ecosystem, Reality collaborates with licensed brokers at major exchanges like Nasdaq and the NYSE. Their process includes purchasing and holding the actual underlying assets in custody, subsequently issuing corresponding on-chain rights, thus connecting traditional capital markets with decentralized infrastructure.

About Merkl

Merkl has established itself as a leader in the on-chain money streaming sector. It serves a diverse clientele including stablecoin issuers, fintech companies, neobanks, and tokenized funds, which utilize Merkl's services for calculating and distributing yields, dividends, and payouts. Since its inception in July 2023, Merkl has facilitated the distribution of over $1.8 billion in tokens across more than 60 chains for numerous companies, including notable names like PayPal and Coinbase.

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