Hotcoin Research | The On-Chain Stock Trading Era Begins: A Deep Dive into the Tokenized Equities Boom

I. Introduction

As crypto ETFs and real-world asset (RWA) tokenization continue to gain traction, the boundaries between crypto and traditional finance are rapidly dissolving. Recently, the emergence of tokenized stocks has become a hot topic across both the financial and technology sectors.

On June 30, Bybit and Kraken simultaneously launched the “xStocks” product — developed by Swiss RWA tokenization platform Backed Finance — featuring around 60 tokenized stocks and ETFs. Kraken co-CEO Arjun Sethi stated that “the market for tokenized equities will eventually surpass that of stablecoins”. On the same day, U.S. brokerage giant Robinhood introduced tokenized stock trading for EU users via Arbitrum, supporting 200+ U.S. stocks and ETFs (including Nvidia, Apple, and Microsoft), with 24/5 availability. The market responded enthusiastically, pushing Robinhood’s stock price up 8% to a record high.

Meanwhile, Dinari secured the first broker-dealer license for tokenized equities in the U.S., aiming to become the first fully compliant platform for such products. Coinbase, the largest U.S. crypto exchange, also revealed that it has filed for regulatory approval to offer on-chain stock trading.

This wave of developments signals a clear trend: tokenized equities are moving from concept to reality, gradually entering the financial mainstream. Could tokenized stocks become the next trillion-dollar narrative that migrates traditional assets onto the blockchain? Are they a true innovation toward financial democratization, or just another crypto hype cycle?

This article unpacks the fundamentals, benefits, and key players in the tokenized equity space, assesses their impact on both crypto and traditional finance, and explores what the future holds for this transformative innovation.

II. Mechanism and Advantages of Tokenized Stocks

1. Definition and Implementation

Tokenized stocks are traditional equity securities represented as digital tokens on a blockchain. Instead of holding stock certificates, investors hold tokens pegged to specific equities, carrying the same rights, such as capital gains and dividends.

There are two primary models of implementation in today’s market:

• 1:1 Real Stock-Backed Model: A regulated custodian holds real shares, and for each share held, one corresponding token is minted on-chain. These tokens are fully asset-backed, similar to reserve-backed stablecoins. For example, Swiss firm Backed issues tokenized U.S. stocks like bAAPL and bTSLA, fully backed by equivalent shares held with regulated banks, with regular proof-of-reserve disclosures. Likewise, Swarm issues tokenized stocks backed by custodied shares, verified monthly to ensure 100% collateralization.
• Synthetic / Derivative Model: This model does not involve holding the actual stocks. Instead, it uses oracles and derivative structures to simulate price movements on-chain. For example, Helix, a DEX in the Injective ecosystem, offers synthetic assets (iAssets) tracking traditional markets like stocks, commodities, and forex via smart contracts. These tokens function more like perpetual swaps or CFDs, relying purely on code and market feeds.

2. Key Advantages

Compared to traditional equity markets, on-chain stock tokens offer several transformative benefits:

• Unrestricted Time and Access: Tokenized stocks can be traded 24/7, even during weekends or market holidays. Global investors can participate from anywhere with a phone or computer — no more timezone or geographic barriers. For example, Robinhood’s tokenized stocks let European users trade U.S. equities just like crypto, without needing a U.S. brokerage account.
• Improved Settlement and Lower Costs: Blockchain-based P2P trading removes the need for centralized clearinghouses and intermediaries. Transactions settle almost instantly, reducing fees and friction. Experts widely believe that tokenization will greatly enhance the cost-efficiency of equity trading.
• Accessibility and Liquidity: High-priced blue-chip stocks can be fractionalized into small units, enabling micro-investments. On-chain tokens can also move freely across wallets and platforms, expanding liquidity beyond traditional venues. For investors in emerging markets, tokenized stocks lower the barriers to entry and cross-border investment.
• Composable DeFi Use Cases: Like any token, tokenized stocks can be transferred, held, spent, or collateralized — completely without intermediaries. Innovative use cases like borrowing stablecoins against bAAPL or earning fees by providing liquidity for bTSLA pairs are now possible. This unlocks dormant equity value and boosts capital efficiency.

In essence, tokenized stocks blend the openness of blockchain with the stability and value foundation of traditional securities, tearing down geographic and temporal walls while enabling fluid integration with DeFi. According to RWA.xyz, the tokenized stock market has grown significantly since early 2025, surpassing $340 million as of July 3, and could ultimately reach a multi-trillion-dollar scale.

Source: https://app.rwa.xyz/stocks

III. Overview of Leading Tokenized Stock Platforms

The concept of tokenized stocks is rapidly transitioning from theory to application, with new platforms springing up around the world. Below is a breakdown of the most notable players:

1. xStocks

On June 30, Swiss token issuer Backed announced the launch of xStocks in partnership with Kraken, Bybit, Raydium, Jupiter, and Kamino. The platform supports 61 U.S. blue-chip stocks and ETFs, including Apple, Amazon, Tesla, and Nvidia, available to non-U.S. users. As a licensed issuer under Swiss DLT law, Backed provides regulatory-grade tokenized stocks for CEXs and DeFi protocols. All tokens are 1:1 backed — each minted token corresponds to a real share purchased and held by a licensed Swiss custodian, with regular proof-of-reserves.

Source: https://xstocks.com/products

2. Bybit

Bybit initially launched CFD-based stock and commodity trading in 2023. On June 16, it rolled out its TradFi multi-asset platform based on MT5, supporting gold, oil, indices, forex, and stock CFDs — all settled in USDT. On June 30, Bybit partnered with xStocks to support on-chain stock tokens backed by real shares. Trading pairs like COINX, NVDAX, CRCLX, AAPLX, HOODX, METAX, GOOGLX, AMZNX, TSLAX, and MCDX are being rolled out progressively.

3. Robinhood

At its June 30 event in Cannes, Robinhood launched tokenized U.S. stock and ETF trading for EU users, enabling crypto-funded trading of 200+ equities with no extra commission, dividend support, and 24/5 trading hours. The tokens are issued on Arbitrum and backed 1:1 by real shares via a broker-dealer partner. Robinhood also announced “Robinhood Chain,” a custom L2 built on Arbitrum optimized for tokenized assets, enabling 24/7 trading, self-custody, and cross-chain transfers. Their vision: “Tokenize everything for free” and build a global on-chain financial network over the next decade.

4. Dinari

In June 2025, Dinari became the first U.S.-registered broker-dealer approved for tokenized stock trading. Its “dShares” are minted on Arbitrum based on real stock purchases, with strict 1:1 backing and custody managed in-house. The platform currently supports ~100 U.S. equities, including Apple, Microsoft, and Coinbase. U.S. and Canadian users can access the platform after KYC. Dividends are distributed via the USD+ stablecoin. Fees: $10 per trade on Ethereum mainnet, $0.20 on L2. Dinari uses a B2B2C model and does not issue its token.

5. Swarm

Swarm is a compliant DeFi infrastructure project that launched tokenized stock and gold trading in 2023. Through its dOTC app, users can trade 12 tokenized U.S. stocks and gold using USDC. Swarm supports Ethereum, Polygon, and Base. Issued by SwarmX GmbH, all tokens are backed 100% by real stocks held with regulated custodians, with verified monthly reserve reports. Swarm has no mandatory KYC, but users must comply with local laws, making it attractive to global users.

Source: https://swarm.com/

6. MyStonks

MyStonks is a Base chain-native decentralized platform offering 100 tokenized U.S. stocks and ETFs. When users buy a stock token, MyStonks purchases the underlying real stock (held by Fidelity), mints an on-chain token, and sends it to the user. Sales result in token burning and stablecoin returns. Chainlink provides price oracles. The platform charges a 0.3% fee.

Source: https://mystonks.org/

7. Helix

Helix is a DEX on the Injective blockchain offering 13 synthetic stock markets (iAssets), including Meta, Tesla, Nvidia, and Coinbase. iAssets are smart-contract-based synthetic assets with no real backing. Traders use USDT as collateral for up to 25x leverage. Settlements are in USDT, not real shares. Fees are low, and loyalty incentives are offered. Helix targets high-volatility, high-leverage crypto-native traders.

Source: https://helixapp.com/

8. Coinbase & Others

Coinbase is actively seeking SEC approval to offer tokenized equity trading in the U.S. According to Chief Legal Officer Paul Grewal, this would put Coinbase in direct competition with Robinhood and Charles Schwab. Other initiatives include Ondo’s “Global Markets” for tokenized RWAs, and Superstate’s “Opening Bell” on Solana, where public companies can issue tokenized shares directly. With big players entering, the tokenized stock ecosystem is set to grow rapidly.

IV. The Impact and Challenges of Tokenized Stocks

1. Market Impact

The tokenized stock boom is reshaping both the crypto and traditional financial sectors in meaningful ways:

• For the Crypto Industry: Tokenization marks a shift from simple crypto trading toward full-spectrum financial platforms that also support traditional assets. Major players like Robinhood, Coinbase, and Kraken are expanding their boundaries, and the line between centralized exchanges and fintech brokerages is becoming increasingly blurred. Investors can now allocate both Bitcoin and Apple shares on the same platform, with both assets tokenized. This not only opens up massive new revenue streams for crypto platforms but also positions them to compete directly with traditional brokerages. Expect intensified competition across user acquisition, liquidity, and technological innovation.
• For Traditional Financial Institutions: This wave is both a challenge and an opportunity. On one hand, blockchain’s direct settlement model disrupts the role of clearinghouses and intermediaries, forcing incumbents to embrace new technologies to stay relevant. On the other hand, asset tokenization provides new growth avenues for Wall Street. JPMorgan began developing blockchain-based securities settlement networks in 2020, and by 2023, banks like Credit Suisse and Citigroup had joined Ethereum-based bond settlement pilots. With tokenized stocks gaining momentum, traditional investment banks may soon launch their blockchain-native trading platforms to avoid being outpaced by agile crypto-native firms.
• For Investors and the Market at large: Tokenized stocks greatly reduce global access barriers to equity markets, allowing more diverse portfolios and more efficient trading. Pain points like T+2 settlement delays and cross-border remittance friction could be mitigated. This democratizes investment access and brings more participants into global capital markets.

2. Risks and Challenges

Despite its promise, tokenized equities still face numerous structural and regulatory hurdles:

• Regulatory Uncertainty: The lack of clear legal frameworks remains a major concern. Although Dinari has paved a compliant path in the U.S., most jurisdictions still lack clarity around the legal status of tokenized stocks. Earlier attempts by Binance and FTX to offer stock tokens were shut down due to regulatory pressure. Without mature frameworks, many platforms operate in gray areas. KYC/AML enforcement is another balancing act — full anonymity invites compliance risks, while excessive identity checks may alienate crypto-native users. Finding the right balance between compliance and accessibility remains a long-term challenge.
• Liquidity and Demand Constraints: As of now, RWAs on-chain total around $23 billion, with tokenized stocks accounting for just $313 million. This means tokenized equities are still in their infancy, far from achieving the “disruptive scale” envisioned by proponents. Charts from RWA.xyz show modest total market cap and monthly volumes, minuscule compared to global equities.
• Platform Maturity: Many tokenized stock platforms are still underdeveloped, with transparency and licensing issues eroding investor confidence. At the same time, traditional equity markets are already highly efficient. For serious retail investors, accessing U.S. stocks via traditional brokers or channels like Stock Connect is relatively straightforward — some compliant tokenized platforms may even feel more cumbersome.
• Limited Appeal to Crypto Traders: For volatility-driven, yield-seeking crypto users, tokenized stocks may feel too “slow.” Unlike altcoins or DeFi tokens that often experience double-digit intraday swings, legacy stocks like Apple and Microsoft offer relatively mild price movements. This reduces excitement among speculative traders.

To truly ignite market-wide adoption, tokenized equities must find new product-market fits and deliver differentiated value. For example, combining tokenized stocks with DeFi yield strategies — such as using bAAPL as collateral to borrow USDC or creating LP pairs with bTSLA — could create new incentives and unlock broader use cases. In this sense, on-chain stock trading must move beyond novelty and become a foundational pillar of the Web3-integrated global capital market.

V. Conclusion

From stablecoins to tokenized equities, the on-chain migration of real-world assets is gradually reshaping the crypto landscape. With regulatory barriers easing and technology maturing, tokenized stocks now stand poised to unlock trillions in traditional financial value. As Kraken’s executive put it, “This isn’t a gimmick — we’re unlocking a foundational shift”.

Tokenized equities carry the vision of financial democratization: allowing individuals around the world to invest on equal footing, no longer restricted by geography or wealth thresholds. Yet the road ahead is far from smooth. Regulatory frameworks, market depth, and user education must all advance in tandem to realize this vision. Still, the tide has turned — Robinhood and Coinbase are now all-in, signaling that the tokenized stock era is well underway.

Looking ahead to the next decade, tokenized stocks may not fully replace traditional equity markets, but they will likely coexist in a dual-rail system — “on-chain + off-chain.” Traditional exchanges will adopt blockchain to cut costs and boost efficiency, while crypto-native platforms will continue to innovate with composability and user experience. Together, these forces will drive the next phase of global financial evolution, offering more inclusive and efficient access to capital markets.

Today’s tokenization boom is only the beginning of the fusion between Wall Street and Web3. In the not-so-distant future, we may witness the rise of a truly borderless, 24/7, trustless global capital market — built not on paper, but on-chain.

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