Reality Partners with Merkl to Support rToken Dividend Distribution Across DeFi - Toronto Star

The tokenization platform Reality, part of the Bitget ecosystem, has joined forces with Merkl to ensure rToken holders can continue receiving dividends in stablecoin even when their tokens are actively used in decentralized finance (DeFi) protocols. This partnership addresses a significant challenge in the tokenized equity space where smart contracts may appear as token holders instead of individual users.

Dividend Distribution Challenge

rTokens provide tokenized exposure to publicly listed stocks and ETFs, including dividends. However, when these tokens are deposited into lending markets, liquidity pools, or staking contracts, the smart contract rather than the individual user appears as the holder onchain. This makes identifying who should receive dividend distributions difficult.

Technology Solution

Merkl's reward forwarder technology solves this by tracing token positions through supported smart contracts to identify the underlying holders and allocate distributions according to applicable rules. The system can account for multiple layers of DeFi contracts and protocol-specific fees. Users and developers can check if individual contracts are supported through the Merkl Studio Forwarder Scan tool.

Expanding Tokenized Equities

Under the partnership, Reality continues managing rToken issuance and dividend entitlements, while Merkl provides the reward forwarding infrastructure. Reality's rToken model distributes eligible cash dividends separately from the token's price, with net cash dividends generally settled in USDT.

The partnership builds on growing adoption of rTokens within Bitget's UEX ecosystem. According to DeFiLlama, rToken trading volume reached $1.16 billion between June and July 2026, while users trading both crypto and rTokens grew 23.54% month over month in July.