The market for tokenized stocks remains small despite rapid growth across blockchain-based assets, with total tradable value at roughly $1.5 billion—below the $1.9 billion market capitalization of the DeFi token UNI. However, forecasts from Standard Chartered point to significant expansion, projecting tokenized assets could exceed $4 trillion by 2028 and account for up to 30% of global assets by 2030.
Institutional capital accelerates tokenized asset growth
The broader tokenized real-world asset market has already surpassed $31 billion, driven largely by institutional adoption in 2026. Growth has concentrated in tokenized U.S. Treasuries, led by BlackRock’s BUIDL fund with about $2.4 billion and Circle’s USYC product with roughly $3 billion.
The entry of major financial firms is reshaping the sector, shifting it away from experimental models toward regulated infrastructure. Blockchain-based financial products from firms like Franklin Templeton, which launched a U.S.-registered mutual fund on-chain, highlight a move toward compliant and scalable systems that offer clearer ownership rights.
Structural limitations persist in tokenized equities
Despite broader momentum, tokenized equities remain underdeveloped and largely reliant on custodial “wrapping” models. In these structures, issuers hold underlying shares and mint tokens that mirror price movements, exposing traders to both custodial and smart contract risks.
xStocks dominates this segment with around 60% market share and approximately $1.7 billion in assets, though its tokens represent claims rather than direct equity ownership. A recent case involving the SPCX token on PreStocks reinforced these risks, as prices fell 40% after traders were told they would need to lock holdings for 180 days before converting to actual shares.
Only 2,290 tokenized stocks exist today, with just 130 exceeding $1 million in market capitalization. The largest listing, Strategy, holds an on-chain value of $129 million, reflecting limited scale and a focus on mature public companies rather than early-stage opportunities.
Native on-chain equity models begin to emerge
New models are starting to address these limitations. Platforms such as Backpack, through Superstate’s Opening Bell initiative, are enabling the issuance of regulated equity directly on-chain. These assets provide holders with dividend and voting rights, bringing them closer to traditional equity ownership.
Momentum has followed these developments. Backpack’s BP token rose 200% after traders were given the option to convert holdings into actual equity following a one-year lock-up, suggesting demand for structures with clearer rights and eventual ownership conversion.
Other projects continue to experiment with governance-focused tokens. Ondo’s ONDO token, for example, offers no direct revenue share, and nearly half of its supply remains locked until 2029. Standard Chartered estimates UNI could reach $100 if tokenized trading volumes expand, driven by higher on-chain fees and buyback mechanisms.
Competition, consolidation, and uncertainty
Industry consolidation and competition are intensifying. Kraken’s acquisition of Backed Finance has fueled speculation about a potential xStocks token launch, though the firm has so far only introduced an xPoints rewards program without confirming token plans. Its $20 billion IPO filing has also prompted questions about whether trading incentives are being used to boost performance metrics.
Securitize, currently ranked third in the sector, is preparing for a public listing via a SPAC merger valued at approximately $1.25 billion, backed by $47 million from BlackRock. Meanwhile, early-stage platform Ventuals has shut down, wiping user point balances to zero and underscoring ongoing risks in the space.
Regulation and blockchain infrastructure shape next phase
Regulatory developments are beginning to align with technological progress. The U.S. Securities and Exchange Commission has proposed updates to Regulation NMS that could better accommodate blockchain-based trading, signaling a shift toward integrating tokenized securities into existing financial frameworks.
At the infrastructure level, public blockchains are starting to capture value from this migration. Solana’s real-world asset ecosystem has reached about $2.95 billion and has led tokenized stock trading volume for 54 consecutive weeks, highlighting sustained network activity.
Outlook remains early-stage but rapidly evolving
Standard Chartered suggests that wider adoption of tokenized assets could provide resilience for the digital asset sector, even during downturns in Bitcoin and Ethereum. As institutional capital flows in and regulatory clarity improves, the gap between traditional finance and on-chain systems is narrowing.
For now, tokenized equities remain in an early stage, constrained by structural limitations and fragmented models. However, the shift toward natively issued, regulated on-chain equity is gaining traction, drawing increasing attention from across financial markets and DeFi.
Curious about real equity on-chain? Explore how tokenized equities could reshape markets by 2030 and beyond.
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