Tokenized stocks represent a groundbreaking fusion of traditional finance and blockchain technology.
They are digital tokens on a blockchain that represent shares of publicly traded companies, offering a new way to buy, sell, and trade stock. Trading could be available 24/7, and traders in countries from around the world could finally obtain direct exposure to America’s leading stocks.
We dig into this evolving phenomena in the article below.
What Are Tokenized Stocks?
Tokenized stocks are digital tokens backed 1:1 by real shares held in custody. They’re built on blockchains such as Ethereum or Solana, but offer exposure to traditional stocks such as JP Morgan or United Healthcare.
Here are some of their key attributes:
- Provide holders with economic rights like dividends and voting
- Enable fractional ownership, allowing investors to buy small portions of high-value stocks
- Token transfers settle quickly, often instantly or within a day, versus traditional settlement times of T+2 or more
- Tradability extends beyond traditional market hours, often enabling 24/7 trading on supported platforms
Key Benefits of Tokenized Stocks
- Broader Market Access: Fractional shares and 24/7 availability open stock ownership to more investors worldwide
- Improved Liquidity: Faster settlement and token exchange improve market fluidity
- Lower Costs: Reduced intermediaries and automation lower fees and friction
- Programmability: Tokens can integrate with DeFi protocols, collateral use, and automated dividend distribution
Recent Developments in 2025
Nasdaq’s Proposal for Tokenized Securities Trading
Recently, Nasdaq filed with the SEC to enable trading of tokenized shares alongside traditional ones on the same order book. Tokenized stocks would be fungible with traditional stock, sharing the same CUSIP number and shareholder rights.
The plan incorporates the use of the Depository Trust & Clearing Corporation (DTCC) for clearing and settlement, and would mark the first major U.S. exchange allowing blockchain-based settlement of tokenized equities, starting in 2026.
Growing Market and Major Players
The aggregate market cap of tokenized stocks reached approx. $424 million in mid-2025, but is projected to surpass $1 trillion in coming years. Here are just a few examples of leading players advancing tokenized stocks:
- Robinhood partnered with Bitpanda to offer 24/7 fractional trading of U.S. stocks to European customers
- Exchanges like Kraken, Coinbase, Gemini, and Bybit are advancing tokenized equity offerings
- Institutional interest is rising, with banks like Bank of America and Citi exploring tokenization of traditional financial assets.
Challenges and Considerations
- Regulatory compliance remains complex and evolving; U.S. markets tightly regulate securities tokens
- Technology integration and investor education are ongoing hurdles
- Access in certain jurisdictions remains limited due to legal frameworks
- Volatility linked to crypto markets can impact tokenized stock pricing
Conclusion
Tokenized stocks are transforming equity markets by democratizing access, enhancing liquidity, and enabling new financial innovations.
With major moves like Nasdaq’s proposed rule changes and growing adoption by fintechs and institutions, 2025 is a pivotal year for tokenized equities.
As the space matures, investors and companies alike stand to gain from these blockchain-powered instruments reshaping capital markets for a new digital era.
