The financial world is waking up to a simple but powerful idea: stocks can be tokenized, and the implications are massive.

Imagine buying Apple stock from a self-custodial wallet, in $5 fractions, settled instantly, using stablecoins.

Last week, Robinhood made headlines with its launch of tokenized U.S. stocks in Europe via a partnership with Berlin-based fintech Bitpanda. This move enables European users to trade U.S. equities 24/7, fractionally, and without traditional brokerage frictions. At ETH CC in Paris, it was one of the most talked-about announcements. Robinhood wasn’t the first to explore tokenized equities, but it was the loudest. And the market listened.

Beyond Robinhood, Kraken, Coinbase, Gemini, and Bybit are actively developing tokenized equity strategies - from synthetic derivatives to tokenized SPVs. 

‍

As of June 2025, their total market capitalization stands at ~$424 million -  a small slice of the tokenized RWA market. Experts projected that tokenized stocks could surpass $1 trillion in market cap in the coming years as institutions seek faster, cheaper access to U.S. equities.

So the implementation phase has already begun. The question now is: How do we scale it in a compliant, efficient, and investor-ready way?

InvestaX is Expanding To Tokenized Stocks

At InvestaX, we’ve been tokenizing real-world assets (RWAs), including private funds, fixed income products, and Bitcoin-based yield strategies.

Now, we’re expanding into tokenized equities.

Through direct collaboration with banks, fintechs, and asset managers, we’re seeing clear demand for compliant, institutional-grade tokenized stocks. We’re proud to provide the regulated infrastructure needed to help institutions launch and scale. 

Stay tuned for our upcoming tokenized stock offerings, designed from day one to meet global compliance, trading security, and user accessibility standards.

How Tokenized Stocks Actually Work

There are two common tokenized stock models: 

• The wrapper structure 
• The native issuance model

Most tokenized stock models today work on a wrapper structure, where a traditional broker or custodian holds the real underlying shares, which are then transferred into a special purpose vehicle (SPV) or trust (set up in an offshore jurisdiction like Jersey or BVI). This SPV is tokenized and becomes the issuing entity that mints digital tokens on a blockchain, with each token representing an economic interest, exposure, or ownership right linked to the performance of the underlying stock. This structure is commonly referred to as a wrapper token, digital twin, or synthetic derivative model, as it enables the creation of on-chain representations of off-chain securities.

In contrast, the native issuance model involves issuing digital securities directly on the blockchain, without referencing or backing by off-chain assets. In this approach, the native digital token itself is the primary security, and legal ownership is recorded and transferred entirely on-chain, subject to applicable securities laws. While the wrapper model bridges traditional and digital finance, the native issuance model aims to streamline issuance, transfer, and settlement entirely on blockchain with blockchain becoming the source of truth for ownership. 

Depending on the model, the tokens may grant direct equity ownership or function more like synthetic derivatives or wrapper tokens, mirroring price movement without passing through rights like voting or dividends. These tokens are then traded on digital asset platforms, often with faster settlement, fractional access, and broader reach, especially for users outside traditional financial systems.

Tokenization marries the legal frameworks with blockchain technology to modernize how securities are issued, held, and traded. Just like every wave of capital market evolution, from electronic trading to ETFs, technology is again driving the shift.

But Are They “Real” Stocks?

Yes, and no.

• Synthetic or wrapper tokens (common) track prices (like CFDs), but don’t grant ownership.
• SPV-backed tokens offer indirect exposure, economic interest often with claims on dividends and distributions.
• Direct/Native tokenized securities are rare and  confer equity and voting rights, but face regulatory hurdles in most jurisdictions.

The key isn’t just the legal form but also its utility. Most investors aren’t demanding voting rights. They want exposure, liquidity, and access.

Why It Matters: Real Infrastructure, Real Momentum

On paper, a tokenized stock sounds fairly mundane: instead of holding your Apple shares in a traditional brokerage account, you hold them in token form on a blockchain wallet.

But underneath that simple shift is a structural rewrite of who gets to invest, how capital moves, and what a financial platform can offer its users:

• Settlement has the potential to move from T+2 to near instant
  
• Ownership becomes programmable
  
• Trading becomes 24/7 and borderless
  
• Minimums can drop to $5 instead of $500
  
• Access shifts from Wall Street to anywhere with internet connection

The Regulatory Tipping Point

• In the U.S., the GENIUS Act, STABLE Act, and SEC clarity on commodity-classified assets are creating a pathway for tokenized securities.
• Europe (MiCA) and Asia (Singapore’s MAS, Hong Kong’s SFC) are already ahead, enabling licensed entities to issue and distribute tokenized stocks and funds.
• Kraken is expanding its securities division in Europe; Coinbase is doubling down on institutional tokenization (see Base L2); and Gemini is exploring offshore RWA strategies.

What It Means For The Market Participants?

• For institutions and asset issuers, tokenization provides an alternative channel to reach new capital. Equity can be fractionalized, distributed in programmable formats, and embedded into new structured products.
• For digital asset platforms, it's obvious: if you already have 20 million verified users holding USDC, why shouldn’t they be able to buy Apple or any other stock the same way they buy Ethereum?
• For fintechs, tokenized stocks mean you don’t have to build an entire brokerage business just to offer fractional shares. 
• And for investors, especially in Asia, LATAM, and Africa, tokenized equities eliminate the friction of broker access, high minimums, FX inefficiencies, and outdated settlement rules.

Final Thought

When someone says “tokenized stocks are just hype,” they’re missing the point.

The actual share ownership structure matters, yes. But so does distribution. So does access. So does utility.

And right now, a huge part of the world is still locked out of investing in companies like Apple, Nvidia, or Microsoft, not because they don’t want to, but because the rails were built for someone else’s world.

Tokenization is changing that and we’re excited to be part of that shift.

‍