Imagine
trading Apple stock at 3 AM on a Sunday, using your Tesla shares as collateral
in a DeFi protocol, or buying fractional ownership of SpaceX through your
crypto wallet. This isn’t science fiction – it’s the reality of tokenized
stocks in 2025, where traditional Wall Street meets cutting-edge blockchain
technology.
Digital stock tokens
blur the lines between crypto and traditional investing. Major crypto exchanges like Kraken, Bybit, and even platforms from the retail trading world like Robinhood or eToro are launching tokenized equity platforms, transforming the way retail investors will access the market.
1. What Are Tokenized
Stocks?
Tokenized
stocks are digital representations of real company shares, living on blockchain
networks rather than traditional exchanges. Think of them as crypto twins of
actual stocks – each token typically represents one share (or fraction) of a
company, fully backed by real shares held in custody.
When you
purchase a tokenized Apple stock, a licensed custodian holds the actual Apple
share in reserve while you receive a blockchain token that mirrors its price
movements. These digital equity tokens can trade on crypto exchanges, integrate
with DeFi protocols, and transfer between wallets – capabilities impossible
with traditional brokerage accounts.
Source: Tiger Research
2. Who’s Leading the
Tokenized Stock Revolution?
The
tokenized equity space exploded in 2025, with crypto exchanges and traditional
brokers racing to capture market share.
Kraken and
Bybit launched simultaneously in
June 2025, offering over 60 U.S. stock tokens branded as
“xStocks.” Partnering with Swiss firm Backed Finance, they tokenized
blue-chip names like Apple, Tesla, NVIDIA, and S&P 500 ETFs on the Solana
blockchain. KuCoin
quickly followed, integrating xStocks for USDT trading pairs, while Bitget
joined the party with seamless wallet transfers and DeFi compatibility.
Robinhood
made waves by
rolling out 200+ tokenized stocks for EU customers, including private
companies like OpenAI and SpaceX. Built on Arbitrum blockchain, these tokens
drove Robinhood’s stock price to all-time highs upon announcement. eToro
expanded to 24/5 stock trading and announced plans for ERC-20 tokenized
equities on Ethereum , targeting true 24/7 markets by year-end.
Even Gemini
entered through a partnership with FINRA-approved startup Dinari, while CMC
Markets hinted at tokenized asset launches via CMC CapX. The roster spans
from crypto-native exchanges to traditional brokers, all seeking to bridge Wall
Street and blockchain technology.
3. Why Tokenized Stocks
Are Exploding Now
Infrastructure
maturity played a key role. High-performance blockchain networks like Solana
and Ethereum Layer-2 solutions now offer fast, low-cost transactions suitable
for financial applications. Unlike earlier attempts (Binance’s short-lived 2021
experiment), current offerings launch through compliant, licensed entities in
crypto-friendly jurisdictions like Switzerland and EU member states.
Global
demand for round-the-clock
market access drives adoption. Retail investors worldwide want to trade
U.S. stocks outside
traditional 9:30 AM-4:00 PM EST windows. Backed Finance’s xStocks surpassed
$300 million in trading volume within four weeks of launch, demonstrating
pent-up appetite for blockchain-based equity trading.
4. What Are The Benefits?
Always-On Markets Meet DeFi
Tokenized
stocks promise several advantages over traditional equity trading, starting
with extended trading hours. Instead of being locked into 6.5-hour market
windows, these tokens trade 24 hours a day, 5 days a week (24/5), covering
Asian and European time zones when U.S. markets are closed.
Instant
settlement represents another breakthrough. While traditional stocks require
T+2 settlement (two business days), blockchain transactions clear in seconds
with no intermediaries. Kraken emphasizes this speed advantage, noting trades
execute on-chain immediately rather than waiting for clearing houses.
Fractional
ownership becomes seamless through blockchain divisibility, though many
traditional brokers already offer fractional shares. Lower fees emerge through
blockchain efficiency – Bitget advertises users pay only gas fees without
brokerage commissions for stock token trades.
Source: Easy Equities
5. “Wrapper”
Products With Hidden Dangers
Despite the
excitement, tokenized stocks face significant criticism from industry experts
who question their fundamental value proposition.
Critics
argue these tokens are essentially contracts for difference (CFDs) rebranded
for the crypto era. As Anton Golub, the Chief Business Officer at Dubai-based
crypto exchange Freedx bluntly
stated, “It’s a wrapper… not real equity.” Token holders rely
entirely on issuer promises and custody arrangements – if that trust chain
breaks, there’s no direct recourse to underlying shares.
Liquidity
concerns plague off-hours trading. While 24/5 access sounds attractive, market
makers struggle to hedge stock exposure when underlying markets are closed.
This creates artificial pricing with wide spreads during weekends and overnight
sessions, potentially making the promised round-the-clock trading illusory when
volumes disappear.
6. Europe, Not the U.S.,
in the Lead
Europe
leads adoption due to accommodating regulatory frameworks. The EU lacks
accredited-investor restrictions preventing retail participation in security
tokens, while jurisdictions like Lithuania (where
Robinhood obtained its crypto license) provide EU passport access for
cross-border services.
Kraken,
Bybit, and KuCoin restrict tokenized equities to non-U.S. users, operating
through entities in crypto-friendly jurisdictions. Switzerland’s regulatory
clarity makes it attractive for issuers like Backed Finance to tokenize assets
with proper legal backing.
U.S.
markets remain closed to retail tokenized stock trading. SEC rules likely
classify these tokens as securities requiring registration or
accredited-investor limitations. Coinbase actively seeks SEC approval through
no-action letters or exemptions to launch tokenized equity trading for American
customers, potentially creating massive new business lines.
7. The Market Will Hit $19T
by 2033
Tokenized
stock adoption shows promising early signals despite nascent status. Backed
Finance’s $300+ million trading volume in four weeks demonstrates genuine
investor appetite, while Robinhood’s stock price surge upon tokenized equity
announcement reflects market enthusiasm.
Real-world
asset (RWA) tokenization projections are staggering – estimates
suggest growth from $0.6 trillion in 2025 to $18.9 trillion by 2033. Even
capturing a fraction of global equity trading could generate massive volumes
for tokenized platforms.
Source: BCG
8. Solana and Ethereum
Dominates The Ecosystem
Solana
emerges as the preferred blockchain for tokenized stocks due to high throughput
and low transaction costs. Kraken, Bybit, and Backed Finance chose Solana for
xStocks, enabling fast settlement and DeFi integration capabilities.
Ethereum
remains important through Layer-2 solutions like Arbitrum, which powers
Robinhood’s tokenized equity platform. eToro
plans ERC-20 tokenized shares on mainnet Ethereum, betting on network
effects and DeFi ecosystem maturity.
|
Platform |
Issuer |
Launch |
No. of stocks / ETFs at start |
Tech |
Who can |
|
Kraken |
xStocks |
Live (phased |
60+ U.S. |
ERC-20 tokens bridged to Solana |
Non-U.S. |
|
Bybit |
xStocks |
Live |
60+ U.S. |
ERC-20 tokens bridged to Solana |
Non-U.S. |
|
Robinhood |
Stock tokens |
Pilot this |
200+ U.S. |
Arbitrum L2 |
EU residents |
|
Gemini |
via Dinari |
Live |
Rolling launch, first share MSTR |
ERC-20 on |
EU residents |
|
Dinari |
dShares |
Live (FINRA |
40+ U.S. |
ERC-20 on |
Non-U.S. |
|
Backed |
xStocks |
Live |
60+ U.S. |
ERC-20 tokens bridged to Solana |
Any venue that integrates them |
9. New Investment Strategies
Tokenized
stocks enable novel investment approaches impossible with traditional
portfolios. DeFi yield farming using equity tokens as collateral creates new
income streams, while 24/7 trading allows responsive position management across
global time zones.
Portfolio
diversification benefits from seamless crypto-equity integration within single
platforms. Investors can balance Bitcoin holdings with tokenized Tesla shares
without multiple brokerage relationships or complex fund transfers.
Risk
management requires understanding counterparty exposure, regulatory changes,
and liquidity variations during off-hours trading. Dollar-cost averaging
becomes possible through programmable blockchain transactions, enabling
automated investment strategies.
10. Tokenized Stocks Will
Become “The Next Big Thing”
Tokenized
stocks represent early steps toward fully on-chain financial markets where
traditional asset classes integrate seamlessly with crypto ecosystems. 24/7
global markets may become standard expectations as geographical and temporal
barriers dissolve.
The
question isn’t whether tokenized stocks will succeed, but how quickly
traditional financial markets will adapt to blockchain-native investor
expectations for seamless, global, always-on trading experiences.
Stay ahead in the world of tokenized stocks! Follow FinanceMagnates.com and explore our dedicated section for the latest news and insights.
Imagine
trading Apple stock at 3 AM on a Sunday, using your Tesla shares as collateral
in a DeFi protocol, or buying fractional ownership of SpaceX through your
crypto wallet. This isn’t science fiction – it’s the reality of tokenized
stocks in 2025, where traditional Wall Street meets cutting-edge blockchain
technology.
Digital stock tokens
blur the lines between crypto and traditional investing. Major crypto exchanges like Kraken, Bybit, and even platforms from the retail trading world like Robinhood or eToro are launching tokenized equity platforms, transforming the way retail investors will access the market.
1. What Are Tokenized
Stocks?
Tokenized
stocks are digital representations of real company shares, living on blockchain
networks rather than traditional exchanges. Think of them as crypto twins of
actual stocks – each token typically represents one share (or fraction) of a
company, fully backed by real shares held in custody.
When you
purchase a tokenized Apple stock, a licensed custodian holds the actual Apple
share in reserve while you receive a blockchain token that mirrors its price
movements. These digital equity tokens can trade on crypto exchanges, integrate
with DeFi protocols, and transfer between wallets – capabilities impossible
with traditional brokerage accounts.
Source: Tiger Research
2. Who’s Leading the
Tokenized Stock Revolution?
The
tokenized equity space exploded in 2025, with crypto exchanges and traditional
brokers racing to capture market share.
Kraken and
Bybit launched simultaneously in
June 2025, offering over 60 U.S. stock tokens branded as
“xStocks.” Partnering with Swiss firm Backed Finance, they tokenized
blue-chip names like Apple, Tesla, NVIDIA, and S&P 500 ETFs on the Solana
blockchain. KuCoin
quickly followed, integrating xStocks for USDT trading pairs, while Bitget
joined the party with seamless wallet transfers and DeFi compatibility.
Robinhood
made waves by
rolling out 200+ tokenized stocks for EU customers, including private
companies like OpenAI and SpaceX. Built on Arbitrum blockchain, these tokens
drove Robinhood’s stock price to all-time highs upon announcement. eToro
expanded to 24/5 stock trading and announced plans for ERC-20 tokenized
equities on Ethereum , targeting true 24/7 markets by year-end.
Even Gemini
entered through a partnership with FINRA-approved startup Dinari, while CMC
Markets hinted at tokenized asset launches via CMC CapX. The roster spans
from crypto-native exchanges to traditional brokers, all seeking to bridge Wall
Street and blockchain technology.
3. Why Tokenized Stocks
Are Exploding Now
Infrastructure
maturity played a key role. High-performance blockchain networks like Solana
and Ethereum Layer-2 solutions now offer fast, low-cost transactions suitable
for financial applications. Unlike earlier attempts (Binance’s short-lived 2021
experiment), current offerings launch through compliant, licensed entities in
crypto-friendly jurisdictions like Switzerland and EU member states.
Global
demand for round-the-clock
market access drives adoption. Retail investors worldwide want to trade
U.S. stocks outside
traditional 9:30 AM-4:00 PM EST windows. Backed Finance’s xStocks surpassed
$300 million in trading volume within four weeks of launch, demonstrating
pent-up appetite for blockchain-based equity trading.
4. What Are The Benefits?
Always-On Markets Meet DeFi
Tokenized
stocks promise several advantages over traditional equity trading, starting
with extended trading hours. Instead of being locked into 6.5-hour market
windows, these tokens trade 24 hours a day, 5 days a week (24/5), covering
Asian and European time zones when U.S. markets are closed.
Instant
settlement represents another breakthrough. While traditional stocks require
T+2 settlement (two business days), blockchain transactions clear in seconds
with no intermediaries. Kraken emphasizes this speed advantage, noting trades
execute on-chain immediately rather than waiting for clearing houses.
Fractional
ownership becomes seamless through blockchain divisibility, though many
traditional brokers already offer fractional shares. Lower fees emerge through
blockchain efficiency – Bitget advertises users pay only gas fees without
brokerage commissions for stock token trades.
Source: Easy Equities
5. “Wrapper”
Products With Hidden Dangers
Despite the
excitement, tokenized stocks face significant criticism from industry experts
who question their fundamental value proposition.
Critics
argue these tokens are essentially contracts for difference (CFDs) rebranded
for the crypto era. As Anton Golub, the Chief Business Officer at Dubai-based
crypto exchange Freedx bluntly
stated, “It’s a wrapper… not real equity.” Token holders rely
entirely on issuer promises and custody arrangements – if that trust chain
breaks, there’s no direct recourse to underlying shares.
Liquidity
concerns plague off-hours trading. While 24/5 access sounds attractive, market
makers struggle to hedge stock exposure when underlying markets are closed.
This creates artificial pricing with wide spreads during weekends and overnight
sessions, potentially making the promised round-the-clock trading illusory when
volumes disappear.
6. Europe, Not the U.S.,
in the Lead
Europe
leads adoption due to accommodating regulatory frameworks. The EU lacks
accredited-investor restrictions preventing retail participation in security
tokens, while jurisdictions like Lithuania (where
Robinhood obtained its crypto license) provide EU passport access for
cross-border services.
Kraken,
Bybit, and KuCoin restrict tokenized equities to non-U.S. users, operating
through entities in crypto-friendly jurisdictions. Switzerland’s regulatory
clarity makes it attractive for issuers like Backed Finance to tokenize assets
with proper legal backing.
U.S.
markets remain closed to retail tokenized stock trading. SEC rules likely
classify these tokens as securities requiring registration or
accredited-investor limitations. Coinbase actively seeks SEC approval through
no-action letters or exemptions to launch tokenized equity trading for American
customers, potentially creating massive new business lines.
7. The Market Will Hit $19T
by 2033
Tokenized
stock adoption shows promising early signals despite nascent status. Backed
Finance’s $300+ million trading volume in four weeks demonstrates genuine
investor appetite, while Robinhood’s stock price surge upon tokenized equity
announcement reflects market enthusiasm.
Real-world
asset (RWA) tokenization projections are staggering – estimates
suggest growth from $0.6 trillion in 2025 to $18.9 trillion by 2033. Even
capturing a fraction of global equity trading could generate massive volumes
for tokenized platforms.
Source: BCG
8. Solana and Ethereum
Dominates The Ecosystem
Solana
emerges as the preferred blockchain for tokenized stocks due to high throughput
and low transaction costs. Kraken, Bybit, and Backed Finance chose Solana for
xStocks, enabling fast settlement and DeFi integration capabilities.
Ethereum
remains important through Layer-2 solutions like Arbitrum, which powers
Robinhood’s tokenized equity platform. eToro
plans ERC-20 tokenized shares on mainnet Ethereum, betting on network
effects and DeFi ecosystem maturity.
|
Platform |
Issuer |
Launch |
No. of stocks / ETFs at start |
Tech |
Who can |
|
Kraken |
xStocks |
Live (phased |
60+ U.S. |
ERC-20 tokens bridged to Solana |
Non-U.S. |
|
Bybit |
xStocks |
Live |
60+ U.S. |
ERC-20 tokens bridged to Solana |
Non-U.S. |
|
Robinhood |
Stock tokens |
Pilot this |
200+ U.S. |
Arbitrum L2 |
EU residents |
|
Gemini |
via Dinari |
Live |
Rolling launch, first share MSTR |
ERC-20 on |
EU residents |
|
Dinari |
dShares |
Live (FINRA |
40+ U.S. |
ERC-20 on |
Non-U.S. |
|
Backed |
xStocks |
Live |
60+ U.S. |
ERC-20 tokens bridged to Solana |
Any venue that integrates them |
9. New Investment Strategies
Tokenized
stocks enable novel investment approaches impossible with traditional
portfolios. DeFi yield farming using equity tokens as collateral creates new
income streams, while 24/7 trading allows responsive position management across
global time zones.
Portfolio
diversification benefits from seamless crypto-equity integration within single
platforms. Investors can balance Bitcoin holdings with tokenized Tesla shares
without multiple brokerage relationships or complex fund transfers.
Risk
management requires understanding counterparty exposure, regulatory changes,
and liquidity variations during off-hours trading. Dollar-cost averaging
becomes possible through programmable blockchain transactions, enabling
automated investment strategies.
10. Tokenized Stocks Will
Become “The Next Big Thing”
Tokenized
stocks represent early steps toward fully on-chain financial markets where
traditional asset classes integrate seamlessly with crypto ecosystems. 24/7
global markets may become standard expectations as geographical and temporal
barriers dissolve.
The
question isn’t whether tokenized stocks will succeed, but how quickly
traditional financial markets will adapt to blockchain-native investor
expectations for seamless, global, always-on trading experiences.
Stay ahead in the world of tokenized stocks! Follow FinanceMagnates.com and explore our dedicated section for the latest news and insights.