Reality partners with Merkl to track rToken holders across DeFi protocols

By Divya Shah

Why this matters: The partnership addresses a key challenge in tokenised finance, helping investors retain dividend benefits while using assets across supported DeFi protocols.

Reality, a tokenisation platform that brings publicly listed equities onchain and is part of the Bitget ecosystem, partnered with Merkl to improve dividend distribution for rToken holders whose tokens are deployed across supported decentralised finance (DeFi) protocols.

The partnership aimed to ensure eligible holders continued receiving dividends in stablecoins even when their tokenised assets were being used in DeFi applications rather than held in personal wallets.

Reality’s rTokens provide tokenised exposure to publicly listed stocks and exchange-traded funds (ETFs), including eligible economic benefits such as dividends. However, when these tokens are deposited into lending markets, liquidity pools or staking contracts, the smart contract may appear as the onchain holder instead of the individual investor. This can make it difficult to identify who is entitled to receive dividend payments.

Merkl’s reward forwarder technology addresses this challenge by tracing token positions across supported smart contracts to identify the underlying holders. It can follow ownership through multiple layers of DeFi contracts and account for protocol-specific fees, helping ensure distributions reach eligible users according to the applicable rules.

Pablo Veyrat, CEO and co-founder of Merkl, said the technology helped identify the individuals behind DeFi positions, allowing Reality to determine who held the tokens and direct dividends to the appropriate recipients.

Users and developers can check whether individual smart contracts are supported through Merkl Studio’s Forwarder Scan tool.

Gracy Chen, CEO of Bitget, said tokenised equities should offer value beyond trading. She added that the partnership with Merkl would help make tokenised equities more practical for everyday use.

Under the partnership, Reality will continue to manage rToken issuance and dividend entitlements, while Merkl will provide the infrastructure to identify eligible holders across supported DeFi positions.

Reality’s rToken model distributes eligible cash dividends separately from the token’s market price. Net cash dividends are generally settled in USDT. However, dividend distribution for tokens deployed in DeFi remains subject to supported smart contracts and the applicable distribution rules.

The partnership builds on the growing adoption of rTokens within Bitget’s Universal Exchange (UEX) ecosystem.