The landscape of financial assets is undergoing a dramatic transformation, with tokenized equities rapidly emerging as a significant new asset class. Once a niche concept, this market has exploded almost 30-fold in the past year, now nearing $1 billion, fueled by a confluence of platform innovation, evolving regulatory frameworks, and traditional finance embracing blockchain as core infrastructure.
The Surging Market and Its Key Players
The tokenized equities market has witnessed unprecedented growth, primarily driven by a few agile platforms. Ondo Global Markets quickly became a dominant force, capturing roughly half the market, followed by Backed Finance (now Kraken-backed) and Securitize, collectively accounting for over 93% of the total value. This rapid expansion reflects a substantial pent-up demand, particularly from international investors seeking 24/7 access to U.S. equities via blockchain rails. Unlike the more conservative tokenized treasuries, equities are attracting speculative and access-oriented flows, evidenced by a high volume-to-AUM ratio of nearly 3x, indicating active trading rather than passive holding. While Ethereum remains the leading blockchain, platforms are diversifying, with Solana gaining ground due to its speed and Algorand leveraging its focus on compliant securities infrastructure.
Regulatory Clarity Paving the Way
A pivotal moment for the tokenized equities market arrived in December 2025, marked by significant regulatory advancements that promise to accelerate institutional adoption. The SEC authorized a three-year pilot program with DTCC, enabling the tokenization of Russell 1000 equities and U.S. Treasury securities, effectively creating a bridge between traditional market infrastructure and blockchain settlement. Further clarity from the SEC affirmed that broker-dealers can custody tokenized equities by controlling private keys, removing a major hurdle for institutional participation. Internationally, Ondo secured approval to offer tokenized U.S. stocks across 30 EEA countries, significantly expanding its reach and underscoring a global movement towards legitimizing these digital assets.
A Glimpse into the Future
The journey of tokenized equities from a nascent idea to functional market infrastructure in under a year sets the stage for exponential future growth. The trajectory depends heavily on sustained regulatory momentum and the willingness of traditional market players to fully integrate blockchain rails beyond experimental sandboxes. Forecasts for the broader tokenized asset market by the early 2030s range from $2 trillion to nearly $19 trillion, suggesting the tokenized equities segment could reach $20 billion to $190 billion by the end of this decade with sustained annual growth of 50-100%+. A significant catalyst for this ambitious growth could be the integration of tokenized stocks as usable collateral within Decentralized Finance (DeFi), offering retail investors programmable, on-chain borrowing against publicly traded equity.
