Tokenized Stocks Surge on Policy Shifts

Tokenized stocks have surged nearly 3000% since early 2025, reaching a market cap of $1.1 billion. This growth is attributed to a shift in U.S. policy towards embracing innovation in the crypto space. The shift involves U.S. regulators moving from a primarily enforcement-focused stance to a more innovation-oriented approach. Stablecoins are playing a crucial role, evolving from cross-border remittance tools to domestic payment rails. Global adjusted transaction volume for stablecoins exceeds $10 trillion, with raw transfer volume reaching $33 trillion in 2025. Lower fees on networks like Solana and Base, around $0.00201 per transaction, compared to credit card fees of 2.3–3.5%, are driving merchant adoption. Former CFTC Chair Chris Giancarlo noted more frequent meetings between the SEC and CFTC, now every two weeks, to accelerate digital asset regulation. This regulatory clarity is supporting the growth of tokenized markets. The broader real-world asset (RWA) segment has grown to over $26.5 billion, marking an 8.3% increase over 30 days. Tokenization enables fractional ownership, allowing investors to buy small portions of expensive stocks. It also facilitates 24/7 trading, appealing to crypto investors who prefer constant market access and faster settlement times. This round-the-clock availability distinguishes tokenized stocks from traditional exchanges. Leading platforms in the tokenized stock market include Ondo (58% market share) and xStocks (24% market share). The integration of platforms like 1inch with Ondo has led to combined trading volumes exceeding $2.5 billion since September 2025. Boston Consulting Group estimates the global market for tokenized assets could exceed $16 trillion by 2030. US banking regulators have clarified the capital treatment of tokenized securities, confirming that existing frameworks apply. The guidance specifies that eligible tokenized securities, conferring the same legal rights as traditional counterparts, receive equivalent treatment. This includes derivatives referencing tokenized securities. Nasdaq has filed with the SEC to offer tokenized stocks on its platform, signaling a top strategic priority. However, the European Securities and Markets Authority (ESMA) has warned of potential investor confusion due to differing shareholder rights. ESMA also noted that most tokenized equity projects remain small and illiquid. NYSE is developing a 24/7 digital trading venue for tokenized shares, pending regulatory approval. TD Securities views this as a "2.0" market shift with implications for trading hours, collateral management, and settlement cycles. Tokenization activity accelerated in 2024, particularly in private credit and U.S. Treasury products.