Despite the vast potential of tokenized US stocks, current investment options remain limited for investors.
Author: Lawrence Lee, Mint Ventures
Recent developments in the tokenized US stock sector include:
- Kraken announced xStocks, a platform for trading tokenized stocks.
- Coinbase seeks regulatory approval for tokenized stock trading.
- Solana proposed a blockchain-based framework for tokenized US stocks.
These advancements, coupled with Circle's recent IPO frenzy, highlight the growing excitement around tokenized equities.
Value Proposition of Tokenized US Stocks
- Expanded Market Access: Enables 24/7, borderless, permissionless trading—unmatched by traditional exchanges like NASDAQ or NYSE (even as NASDAQ plans for 24-hour trading by late 2026).
- Enhanced Composability: Integration with DeFi allows tokenized stocks to serve as collateral, margin, or components in index/ETF products, unlocking innovative use cases.
Key Stakeholder Benefits
| Stakeholder | Advantages |
|---|---|
| Issuers (US-listed companies) | Global investor reach via blockchain. |
| Investors | Access for previously excluded retail participants. |
👉 Explore the future of tokenized equities
Market Overview
According to RWA.xyz, the current market cap of tokenized stocks is $321M, held by just 2,444 addresses—a stark contrast to the multi-trillion-dollar traditional equity market.
Major Players
1. Exodus (NYSE: EXOD)
- First SEC-approved tokenized stock (self-referential).
- Market cap: **$770M** (~$240M on-chain).
- Limitation: Non-tradable on-chain; symbolic utility only.
2. Dinari
- Compliance-focused: Registered in the US; supports non-US users.
- Process: KYC → USD+ stablecoin payment → dShares issuance (1:1 backing).
- Drawback: No on-chain trading; resembles traditional brokers like Robinhood.
3. Backed Finance
- Swiss-based: ERC-20 bSTOCK tokens tradable on-chain.
- TVL: ~$8M (10x Dinari’s).
- Key Feature: Enables AMM liquidity pools (avg. APY: 32.91%).
4. xStocks (by Kraken)
- Collaborators: Solana, Backed Finance, Bybit, and DeFi protocols (e.g., Kamino).
- Potential: Combines CEX liquidity with DeFi composability.
Emerging Solutions
- Robinhood Europe: Tokenized contracts (non-transferable).
- Solana’s Project Open: Proposes compliant on-chain trading with KYC.
- Ondo Global Markets: Planned 24/7 trading with collateralization features.
Synthetic Alternatives
Platforms like Gains Network and Helix offer leveraged synthetic exposure but face liquidity and regulatory hurdles.
Investment Outlook
Few pure-play options exist:
- $STONKS (Meme coin linked to mystonks.org).
- Indirect exposure: $SOL, $ONDO, $ORCA.
👉 Why tokenization could reshape capital markets
FAQ
Q: Can US investors participate in tokenized stocks?
A: Currently, most platforms exclude US users due to regulatory constraints.
Q: What’s the advantage of on-chain trading?
A: 24/7 markets and integration with DeFi protocols (e.g., lending/AMMs).
Q: How secure are tokenized stocks?
A: Backed by audited reserves (e.g., Chainlink proofs) and compliant custodians.
Conclusion: Tokenization bridges traditional equities with DeFi’s innovation—liquidity and regulatory clarity will determine its trajectory.
Disclaimer: This content is for informational purposes only and is not investment advice.