How Tokenised Stocks Are Creating a Parallel 24/7 Market for Equities

Why It Matters

The growth of tokenised stocks creates an always‑on, borderless equity market that could erode legacy brokerage models and reshape capital‑market infrastructure.

Key Takeaways

• Tokenised stock volume exceeds $1 billion, December peak.
• 24/7 trading bypasses US market hours, attracts global investors.
• Regulators classify tokens as securities, not crypto assets.
• Deutsche Bank forecasts $1.5‑2 trillion market by 2030.
• Traditional brokers face model disruption from on‑chain liquidity.

Pulse Analysis

The surge in tokenised stock activity reflects a broader appetite for continuous market participation. By minting shares on platforms like Ethereum and Solana, providers such as Backed Finance enable investors to trade U.S. equities around the clock, eliminating the latency of traditional after‑hours sessions. This on‑chain liquidity not only captures macro‑driven price moves but also opens exposure to billions of potential participants who lack local brokerage accounts or wish to avoid foreign‑exchange spreads.

Regulatory clarity is emerging as a decisive factor in the sector’s maturation. European supervisors, led by ESMA, emphasize technological neutrality while reaffirming that tokenised equities fall under MiFID II, not the crypto‑focused MiCA framework. In the United States, the SEC treats these assets as securities, requiring registration or exemption, and has granted DTCC a no‑action period to pilot on‑chain settlement within existing clearing structures. Such guidance mitigates legal uncertainty, encouraging institutional entry while discouraging regulatory arbitrage.

For incumbent brokers, the implications are profound. Deutsche Bank’s projection of a $1.5‑2 trillion tokenised‑asset market by 2030 signals a shift from time‑bound trading desks to perpetual digital gateways. Firms must reassess liquidity provision, custody solutions, and client onboarding to remain competitive. Embracing tokenisation could unlock new revenue streams and enhance cross‑border access, whereas resistance may relegate traditional players to a peripheral role in an increasingly decentralized capital‑market ecosystem.