Tokenized stocks reach $1.2b market cap as institutional interest grows

The market capitalization of tokenized stocks reached $1.2 billion in 2025, with industry analysts drawing comparisons to the early growth trajectory of stablecoins, according to market data from Token Terminal.

Tokenized stocks represent real-world equity shares issued or mirrored on blockchain networks, enabling round-the-clock trading, rapid settlement, and fractional ownership. Market data shows steady growth in early 2024, with significant momentum occurring in September and December, pushing total market value to record levels.

The sector has attracted increased institutional attention as products have become more compliant, liquidity has deepened, and access has expanded, according to industry observers. LiveBitcoinNews cites several analysts have compared the current phase to the stablecoin market in 2020, which served primarily crypto traders before expanding to a $300 billion market.

The asset class offers several features that distinguish it from traditional equity trading, including continuous trading beyond standard market hours, settlement within minutes, and fractional ownership that lowers entry barriers. Blockchain infrastructure consolidates custody, clearing, and settlement into a single process.

Institutional participation accelerated in September 2024 when Backed Finance launched its xStocks suite on Ethereum, featuring approximately 60 tokenized equities. The launch included partnerships with cryptocurrency exchanges Kraken and Bybit for distribution.

On Dec. 29, Token Terminal data indicated that September was one of the strongest growth months for the sector.

Nasdaq confirmed it filed with the U.S. Securities and Exchange Commission to offer tokenized stocks on its platform, according to company statements. The exchange’s involvement represents a significant development given its position in global equity markets.

Ondo Finance announced plans to launch tokenized U.S. stocks and exchange-traded funds on the Solana blockchain in early 2026. Coinbase has indicated plans to add stock trading to its platform as part of its expansion strategy, according to company disclosures.

Regulatory frameworks are expected to shape future development of the sector. Tokenized stocks operate at the intersection of traditional securities and blockchain technology, requiring oversight from financial regulators. Platforms such as Securitize focus on direct ownership models, while Nasdaq operates within SEC regulatory frameworks.

Abu Dhabi and other jurisdictions have shown openness to tokenized assets, though global regulatory coordination remains limited. Industry participants indicate that clearer regulatory frameworks in 2026 could accelerate institutional participation in the sector.