A fast-growing market for tokenized equities is beginning to attract attention from trading platforms and brokerages looking for new revenue streams beyond traditional stock and CFD trading.
According to a report by Foresight Ventures, tokenized equities account for roughly $800 million in market capitalization, making them one of the fastest-growing segments of the broader real-world asset (RWA) market.
The sector has expanded 30-fold year-to-date, with monthly trading volumes approaching $1.8 billion.While still small relative to global equity markets, the sector is emerging as a new way to provide continuous access to U.S. stocks.
For brokers, the appeal is straightforward: demand for global equity exposure outside traditional trading hours. Tokenized stocks allow 24/7 trading and near-instant settlement, making it possible to offer U.S. equity exposure to international clients without relying entirely on legacy brokerage infrastructure.
The demand is partly driven by a younger generation of investors who expect markets to behave more like digital platforms. A recent Coinbase study found that many younger traders value continuous market access, multi-asset trading and social features over traditional advisory models.
- Tokenized Stock Volumes Surge 450% Post-Earnings, Signalling Investor Shift Towards Regulated Crypto Assets
- Nasdaq Crypto Chief: “We'll Move as Fast as We Can” on Tokenized Stocks
- MicroStrategy and Tesla Lead Bitget's $5B Tokenized Stock Trading Surge
A New Way to Access U.S. Stocks
Traditional equity markets operate within limited trading windows and often involve geographic barriers that make direct access difficult for many international investors.
Tokenization attempts to remove these frictions by representing publicly traded shares as blockchain-based tokens that can trade continuously.
For trading platforms, this opens the possibility of round-the-clock trading in major U.S. equities, extending access to investors who cannot easily trade during U.S. market hours.
Early Experiments by Trading Platforms
Several firms are already experimenting with tokenized equities. The report estimates that Ondo Finance controls roughly 53% of the current tokenized stock market, while the Backed and xStocks ecosystem accounts for about 23%.
Traditional retail trading platforms have also begun testing the concept. Robinhood recently launched tokenized equities on the Arbitrum network, although withdrawals are restricted, effectively keeping the assets within its own platform.
Large exchange operators are also moving in the same direction. Nasdaq has said approval for tokenized stocks is now a priority, with executives indicating the exchange is ready to respond to regulatory questions as the U.S. Securities and Exchange Commission evaluates the model
Regulation Remains the Key Constraint
For brokers considering entry into the market, regulation remains the main barrier. Launching compliant tokenized equities typically requires multiple regulatory approvals, including broker-dealer registration, Alternative Trading System (ATS) licensing in the United States, and transfer-agent infrastructure.
In Europe, distribution may rely on frameworks under MiFID II and MiCA, while some issuance structures operate through offshore jurisdictions such as the British Virgin Islands or Jersey.
As a result, the ability to structure cross-border licensing has become one of the main competitive advantages for firms operating in tokenized equities. With global equity markets valued at roughly $150 trillion, tokenised stocks remain a niche segment.
But for brokers exploring new trading formats and extended market access, the rapid growth of the sector suggests the concept is moving from experimentation toward early commercial use.
