The article is updated on October 24, 2025.

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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.

In June 2025, 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, Bybit and most recently Nasdaq are actively developing tokenized equity strategies - from synthetic derivatives to tokenized SPVs.

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As of June 2025, the market capitalization of tokenized stocks stands at ~$424 million -  a small slice of the tokenized RWA market. Though this nascent market is still navigating complex legal and regulatory considerations, today's $424 million tokenized stocks market is projected to potentially surpass $1 trillion as institutions seek faster, cheaper access to U.S. equities.

This momentum is also visible through our own partnerships with regulated digital asset platforms, fintechs, and asset managers, where we see growing demand for compliant, institutional-grade tokenized 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?

What Are Tokenized Stocks?

Tokenized stocks are digital representations of traditional equities, issued and recorded on blockchain infrastructure. Each token typically reflects an economic interest or ownership right linked to a real-world share of a listed company.

Depending on the structure, these tokens can represent:

• Direct ownership in the underlying stock (on-chain securities recorded under regulatory frameworks), or
• Indirect exposure, where tokens mirror the price performance of the equity through structures like SPVs or synthetic derivatives.

In essence, 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 and now, tokenized securities, technology is again driving the shift.

But Are Tokenized Stocks “Real” Stocks?

The short answer: it depends on the tokenization models.

Depending on the tokenization approach, the tokens may grant direct equity ownership or function more like synthetic derivatives or wrapper tokens which mirror price movement.

• 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.

In practice, most investors aren’t chasing voting rights. They want exposure, liquidity, and accessibility - areas where tokenization adds tangible value.

Looking to issue tokenized stocks? Reach out to InvestaX and we’ll help you figure out the structure that fits your strategy.

Why It Matters: Real Infrastructure, Real Momentum

On paper, a tokenized public equity 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

Nasdaq’s Move: Signal From a Veteran Player

Nasdaq’s recent filing with the SEC to allow tokenized versions of listed equities and exchange-traded products (ETPs) is a major development.  If approved, it would introduce dual-format trading - traditional equities and tokenized equivalents on the same order book, with identical execution priority and shareholder rights.

Highlights from Nasdaq’s proposal:

• Technology Backbone: The system will leverage DTCC’s AppChain built on Hyperledger Besu, an enterprise-grade Ethereum framework. The ERC-3643 standard will enable permissioned, compliant security tokens.
• Collaborative Ecosystem: Nasdaq’s initiative includes Accenture, ConsenSys, Citi, Mastercard, Santander, and Visa underscoring how traditional finance is aligning around tokenized infrastructure.
• Efficiency: 24/7 trading and near-instant settlement, reducing friction across borders.

This move signals a structural approach to tokenized equities. The participation of established institutions like Nasdaq and DTCC suggests that tokenization is being developed as an extension of existing market infrastructure rather than a separate system.

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. A licensed asset tokenization platform like InvestaX can handle compliance, issuance, and secondary trading under regulated regimes.
• 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.

What’s Next?

Tokenized equities remain in the early pilot phase, with market participants testing different models across jurisdictions. The next catalyst will likely come from regulatory harmonization, as jurisdictions work to either adapt existing securities laws or develop new frameworks that provide clearer guidance for tokenized securities. 

In the U.S., the GENIUS Act and STABLE Act are establishing clearer ground for reserve-backed and asset-linked digital products. In parallel, Europe (under MiFID II) and Asia (Singapore’s MAS, Hong Kong’s SFC) are enabling licensed entities to issue and distribute tokenized securities within established frameworks.

The U.S. SEC’s Commissioner Hester Peirce has noted that the agency remains open to multiple models of securities tokenization, signaling that the agency is willing to let the market test and evolve under existing securities laws. This flexibility is critical for innovation without undermining investor protection.

Meanwhile, institutions are beginning to operationalize pilot programs. Kraken is expanding its securities division in Europe, Coinbase is planning to launch tokenized stocks, and Gemini is exploring offshore RWA offerings. Collectively, these initiatives suggest that tokenized equities are moving from early testing toward practical, use-case validation.

Tokenize Stocks with InvestaX

InvestaX provides advisory services and regulated infrastructure to help financial firms to design, issue, and scale tokenized stock offerings

Contact us to learn how we can support your offering.

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