Reality, the tokenization platform that brings publicly listed equities onchain as part of the Bitget ecosystem, has announced a strategic partnership with Merkl to ensure rToken holders receive their dividend distributions even when their tokens are actively used in decentralized finance (DeFi) protocols.
rTokens represent tokenized exposure to publicly listed stocks and ETFs, including eligibility for economic benefits such as cash dividends. However, when these tokens are deposited into lending markets, liquidity pools, or staking contracts, the smart contract often appears as the onchain holder instead of the individual user. This creates a significant challenge in identifying who is entitled to receive the associated dividend payments.
Merkl's reward forwarder technology addresses this issue by tracing token positions through supported smart contracts to determine the underlying holders and allocate distributions according to the applicable rules. The system is designed to handle multiple layers of DeFi contracts and account for protocol-specific fees, ensuring accurate and efficient dividend distribution.
Users and developers can verify whether specific contracts are supported using the Merkl Studio Forwarder Scan tool, providing transparency and ease of integration.
"The challenge with assets held in DeFi is knowing who sits behind each position," said Pablo Veyrat, CEO and Co-founder of Merkl. "Our forwarder technology traces ownership through nested smart contracts and tells Reality exactly who holds what, so dividends can reach the right people wherever their tokens are deployed."
Gracy Chen, CEO of Bitget, emphasized the practical benefits: "Tokenized equities should be useful beyond trading. If someone puts their rTokens to work in DeFi, they should still be able to receive the dividends they’re eligible for. Working with Merkl helps us address that challenge and makes tokenized equities more practical for everyday use."
Under the partnership, Reality continues to manage rToken issuance and dividend entitlements, while Merkl provides the infrastructure for identifying eligible holders across supported DeFi positions. The rToken model distributes eligible cash dividends separately from the token's price, with net cash dividends generally settled in USDT. Distribution through DeFi remains subject to the supported contracts and applicable distribution rules.
The collaboration builds on the growing adoption of rTokens within Bitget's UEX ecosystem. According to a DeFiLlama report, rToken trading volume reached $1.16 billion in cumulative volume between June and July, while the number of users trading both crypto and rTokens grew 23.54% month over month in July 2026, pointing to rising demand for tokenized equities as part of broader, cross-asset strategies.
This integration with Merkl supports the next stage of development, helping extend the use of tokenized equities beyond exchange-based trading into DeFi, thereby increasing their utility and accessibility for investors.
This article is for informational purposes only and does not constitute financial advice.
