CMC News

Tokenized Stock Market Reaches $1.2B Scale

Tokenized equity products have grown to $1.2 billion in combined market capitalization, with particularly strong expansion during September and December pushing the sector to record size. Token Terminal compared the current phase to stablecoins circa 2020, before that market exploded to its present $300 billion scale.

The comparison highlights how early the #tokenized stock sector remains despite rapid recent growth. Other observers draw parallels to the 2020 #DeFi boom, suggesting global equities could increasingly migrate on-chain to capture benefits like continuous trading and fractional ownership.

September's acceleration coincided with Backed Finance deploying its xStocks suite on $ETH, launching roughly 60 tokenized equities through distribution deals with Kraken and Bybit. The institutional partnerships marked a shift from experimental pilots to production-scale deployment.

Securitize announced plans earlier in December to enable compliant on-chain trading of public equities with direct share ownership. Ondo Finance is preparing to release tokenized U.S. stocks and exchange-traded funds on $SOL during early 2026.

Coinbase revealed intentions to add stock trading as part of a broader push to become a comprehensive financial platform. The expansion moves beyond crypto-native products into delivering traditional securities through blockchain infrastructure.

#Nasdaq provided perhaps the strongest institutional validation by filing with the Securities and Exchange Commission to offer tokenized stocks on its platform. Matt Savarese, the exchange's head of digital assets strategy, called #tokenization a top organizational priority.

Savarese told #CNBC that Nasdaq aims to integrate blockchain technology without disrupting existing market infrastructure. The exchange wants traditional participants to adopt tokenization gradually rather than forcing a complete system overhaul.