Tokenized Stocks May Be Approaching a Tipping Point
The market for blockchain-based equities shows explosive growth.
Market Growth
According to a Binance Research report obtained by Cointelegraph, the market capitalization of tokenized stocks reached $370 million by the end of July.
Excluding Exodus Movement ($EXOD) shares, the market stood at $53.6 million, representing a 220% increase month-on-month since June.
This growth trajectory mirrors the early days of Decentralized Finance (DeFi), where Total Value Locked (TVL) surged from $1 billion to nearly $100 billion between 2020 and 2021.
“Though still small relative to the global equity market (valued at over US$100T), July’s explosive growth suggests tokenized equities may be nearing a major inflection point in the broader transition to hybrid finance.”
Investor demand is evident in the surge of unique blockchain addresses holding tokenized stocks, which increased from around 1,600 in June to over 90,000 by July.
Potential Market Value
Binance Research estimates that tokenized stocks could potentially reach a $1.3 trillion market cap if just 1% of global equities are tokenized on the blockchain. This figure surpasses the peak valuation of the DeFi market.
The report further suggests that tokenized financial products will drive demand for more sophisticated DeFi infrastructure, reinforcing each other and accelerating mainstream blockchain adoption.
Trading and Adoption
Currently, over 60 tokenized stocks are available for trading on recognized exchanges, including Kraken and Bybit within traditional finance platforms, as well as via specialized blockchains like Solana’s DeFi ecosystem through providers such as Backed Finance’s xStocks.
xStocks promise features like 24/7 trading, freely transferable assets, and commission-free trading on platforms like Kraken.
Mark Greenberg, Global Head of Kraken’s Consumer Business Unit, emphasized that tokenization aims to transcend mere replication of Wall Street systems. He stated, “Tokenized equities can’t just be ‘Wall Street on a blockchain.’ That misses the point… Equities must feel like the internet; always on, self-directed, globally accessible.”
