Tokenized Equities Approach $1B as Institutional Rails Emerge

Why It Matters

The new regulatory framework removes key compliance hurdles, unlocking institutional capital and positioning tokenized equities as a mainstream asset class.

Key Takeaways

• Ondo controls ~54% of tokenized equity market
• Backed/Kraken holds 23% after December acquisition
• SEC permits broker‑dealer custody of tokenized stocks
• Ethereum share falls; Solana gains 18.5%
• Volume‑to‑AUM ratio near 3x indicates active trading

Pulse Analysis

The tokenized equity market has surged to almost $1 billion in under twelve months, a near‑30‑fold jump from its infancy. Three platforms now dominate: Ondo Global Markets with $462 million and 54 % market share, Backed/Kraken’s xStocks at $194 million, and Securitize’s Exodus at $147 million, together accounting for more than 93 % of total value. Investors are drawn to blockchain‑based stocks for round‑the‑clock trading and cross‑border exposure, especially outside the United States, where traditional exchanges cannot match 24/7 liquidity.

The regulatory tide turned in December 2025 when the SEC approved a three‑year DTCC pilot that will bridge tokenized Russell 1000 equities, Treasury securities and index ETFs with legacy clearing houses. Simultaneously, the agency clarified that broker‑dealers may hold private keys for tokenized securities, removing a key institutional barrier. Nasdaq’s proposal to list tokenized assets under national market system oversight further legitimizes the space, while the European approval for Ondo expands the addressable investor base to over 500 million across the EEA.

Looking ahead, growth will hinge on continued regulatory clarity and deeper integration with traditional market infrastructure. Ethereum’s 38 % share is already eroding as Solana and Algorand capture faster finality and compliance‑focused tooling, positioning them as preferred layers for on‑chain lending and collateralization. If tokenized equities become usable DeFi collateral, retail borrowing could accelerate, pushing the sector toward the $20‑$190 billion range projected for 2030. Sustaining 50‑100 % annual growth will require both institutional participation and scalable blockchain solutions.