Tokenized Stocks: The Next Evolution in Financial Markets

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The invention of the stock by the Dutch East India Company in the 17th century marked a turning point in financial history. More than 400 years later, tokenization is paving the way for Stock 2.0—a new era of digital ownership and trading.

On June 30, the U.S.-based internet brokerage Robinhood (NASDAQ: HOOD) announced the launch of Robinhood Stock Tokens, allowing European Union clients to trade U.S. stocks and ETFs on the blockchain. On the same day, Swiss financial instrument issuer Backed introduced its tokenized stock product, xStocks, on major crypto trading platforms Kraken and Bybit.

Currently, at least eight major crypto institutions have entered the tokenized stock market. These entities are leveraging various technical infrastructures—including Arbitrum, Solana, Base, and Ondo Chain—and diverse custody solutions such as self-custody, xStocks, and BitGo. Their goal is to meet global investor demand for flexible trading, on-chain transfers, and regulatory compliance, making tokenized stocks one of the most tangible use cases of Real World Assets (RWA).

How large can the tokenized stock market become? Could it emerge as the next major RWA trend following the groundbreaking rise of stablecoins?

Robinhood: Brokerage and Trading Platform with Upcoming L2

Robinhood, primarily known as an online stock brokerage, first introduced Bitcoin and Ethereum trading in 2018. Despite periodic suspensions of crypto trading due to volatility and regulatory scrutiny—including fines from the SEC—the company has continued expanding its crypto offerings. Key developments include:

According to Robinhood's published data, as of November 2024, the platform custodied $38 billion in crypto assets, with $119 billion in annual nominal crypto trading volume. The company also offers ETH and SOL staking for U.S. customers.

Robinhood's new Stock Tokens, available to EU-based users, enable 24/5 trading of over 200 U.S. companies. These tokens are fully backed 1:1 by real equities held by Robinhood, support on-chain transfers, and entitle holders to dividend payments.

Initially issued on Arbitrum, these tokens will later migrate to Robinhood’s proprietary Layer-2 blockchain, tentatively named Robinhood Chain.

Furthermore, Robinhood now allows European users to trade cryptocurrency perpetual futures. With these additions, Robinhood now offers a full suite of services including spot trading, derivatives, staking, wallet services, RWA products, and AI-driven analytics—all while preparing to launch its own L2 appchain.

Robinhood has also been actively advocating for tokenization legislation in the U.S. and has submitted a proposal to the SEC for a national framework governing tokenized real-world assets. The firm is also planning a Real World Asset Exchange to facilitate off-chain trading with on-chain settlement.

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Coinbase: Broker License Secured, Tokenized Stock Awaiting Approval

On June 17, Reuters reported that U.S. crypto exchange Coinbase is seeking approval from the SEC to launch blockchain-based tokenized stock services. If approved, Coinbase would compete directly with retail brokerages like Robinhood and Charles Schwab.

Coinbase obtained a broker-dealer license as early as 2018 but has not yet activated related services.

xStocks: Tokenized Equities Live on Kraken, Bybit, and Jupiter

xStocks is a tokenized financial product developed by Swiss issuer Backed. These products represent tokenized versions of publicly traded securities, allowing investors to access traditional market assets via the blockchain under the regulatory oversight of the Swiss Financial Market Supervisory Authority (FINMA).

Issued on Solana, xStocks are integrated into Solana’s DeFi ecosystem. Users can trade them on decentralized platforms like Jupiter or on centralized exchanges including Kraken and Bybit.

Kraken announced the listing of xStocks on June 30, offering non-U.S. customers access to 60 tokenized U.S. stocks with 24/5 trading availability. Bybit also revealed a strategic partnership with Backed to list xStocks tokenized stocks and ETFs, supporting 24/7 trading better suited to Web3 users. The initial rollout included 10 popular U.S. stocks.

Dinari: First Tokenized Stock (MicroStrategy) Now on Gemini

On June 27, crypto exchange Gemini announced a collaboration with U.S. tokenized stock provider Dinari to launch tokenized shares of MicroStrategy (NASDAQ: MSTR). Available initially to EU users, the offering is expected to expand to U.S. investors in the coming months. MSTR tokens are currently on Arbitrum, with multi-chain support planned soon.

Dinari has raised $22.65 million from investors including VanEck Ventures, Hack VC, and Balaji Srinivasan. The company aims to provide global access to over 100 tokenized U.S. stocks and financial assets.

Ondo Finance: Introducing Tokenized Securities Platform Ondo Global Markets

Ondo Finance, a DeFi protocol focused on RWA, plans to launch Ondo Global Markets—a platform dedicated to the tokenization of traditional stocks, bonds, and ETFs. The platform will enable non-U.S. investors to access U.S. financial markets with 24/7 instant settlement and DeFi integration.

Ondo Finance draws a parallel with stablecoins, which improved access to the U.S. dollar by reducing cost and friction. The company aims to apply the same principles to capital markets.

On June 17, Ondo announced the formation of a Global Markets Alliance to improve interoperability, investor protection, and access to tokenized RWAs. Alliance members include:

The alliance brings together infrastructure providers, custody specialists, compliance experts, and liquidity platforms to advance the adoption of tokenized securities.

INX Digital: Launching Tokenized Private Equity

On June 18, U.S.-based tokenized asset trading platform INX Digital partnered with Swiss blockchain startup Aktionariat AG to list tokenized equity ($DAKS) on its INX Marketplace, opening investment to global participants.

INX Digital operates a regulated platform for security tokens and tokenized RWAs, holding brokerage and alternative trading system licenses granted by the SEC and FINRA.

Aktionariat AG specializes in blockchain-based tokenization solutions. Since its launch in 2021, it has facilitated over CHF 50 million in transaction volume, served 30,000+ users, and helped tokenize equity for more than 70 private companies with a combined market cap of CHF 400 million.

Industry Outlook: Tokenized Stock Market Could Reach Trillions

According to RWA.xyz, the total market capitalization of tokenized real-world assets reached $24.47 billion as of June 30. Tokenized U.S. treasury products accounted for $7.385 billion, while tokenized stocks represented just $341 million.

Although still a small segment of the broader RWA market, tokenized stocks are gaining attention rapidly as institutional investors recognize the benefits of faster, lower-cost access to U.S. equity markets.

Arnab Nask, CEO of Luxembourg-based fintech firm STOKR, stated in a panel discussion on April 16 that the total addressable market for tokenized stocks is “absolutely a multi-trillion-dollar opportunity,” though precise predictions remain challenging.

Anna Wroblewska, Chief Business Officer at Dinari, noted that 2025 has seen “exponential growth” in demand for tokenized stocks from Web3 wallets, digital banks, and traditional financial services firms.

“The global appetite for U.S. equities is enormous... investors worldwide want to participate in U.S. markets. Tokenization makes this process faster and more affordable,” she explained, comparing the trend to the growing demand for tokenized U.S. treasuries.

Recent all-time highs in major U.S. indices like the Nasdaq and S&P 500—coupled with a total U.S. stock market valuation of $61.94 trillion—suggest significant growth potential for tokenized stocks, which currently represent less than $4 billion in market value.

Frequently Asked Questions

What are tokenized stocks?
Tokenized stocks are digital representations of traditional equities issued on a blockchain. Each token is backed 1:1 by a real share held in custody, offering dividends and on-chain transferability while mirroring the value of the underlying stock.

How do tokenized stocks work?
A financial institution or trusted issuer holds the actual securities and mints equivalent tokens on a blockchain. These tokens can be traded on supported crypto exchanges or DeFi platforms, allowing for extended trading hours and global access.

Are tokenized stocks regulated?
Yes, leading tokenized stock products operate under regulatory frameworks. For example, xStocks is supervised by Switzerland’s FINMA, while U.S. providers often comply with SEC requirements and broker-dealer regulations.

Who can invest in tokenized stocks?
Eligibility varies by platform and jurisdiction. Currently, many offerings are available only to non-U.S. investors due to regulatory considerations. Always check platform terms and local laws before investing.

What are the benefits of tokenized stocks?
Key advantages include 24/7 trading, lower transaction costs, faster settlement, integration with DeFi protocols, and accessibility for international investors who otherwise face barriers to U.S. markets.

What risks are involved?
Potential risks include regulatory changes, custody reliability, platform security, liquidity constraints, and the complexity of cross-border compliance. Investors should perform due diligence on issuers and platforms.