Tokenized stocks surged 2164% to $2.4 billion, led by Ondo

Core Insights

Tokenized stocks have soared 2164% in the past year, pushing the market size on the chain to US$2.4 billion.

Ondo Finance leads the segment with a market share of 39.4%, despite facing increased competition from new issuers.

Rising institutional adoption and growth in RWA (real world assets) are driving expectations for further expansion of tokenized stocks.

The latest RWA tokenization indicators show that the listed value of tokenized stocks has soared by 2,163.8% in the past year and currently reaches US$2.4 billion. [TAG

Tokenized stock issuers have transformed what was once a niche experiment into the serious blockchain realm, and there are no signs of slowing down.

According to Token Terminal, the tokenized equity sector is growing faster than many other asset classes, while also putting real pressure on traditional equity markets.

Token Terminal said on the X platform that issuers speculate that as more traditional stocks adopt the tokenization route, the market value of the sector may grow to a staggering $150 trillion.

Ondo leads in crowded market

Ondo Finance leads tokenized stock growth trend with 39.4% market share, followed by xStocks and Binance bStocks. Even as competitors close the gap, it still dominates the issuance of tokenized shares.

According to RWA.xyz, Ondo has tokenized hundreds of U.S. stocks and ETFs on Ethereum, Solana and BNB Chain. The market value of stablecoins on the platform increased by 7.57% last month, while the number of stock holders on Ondo increased by 8.52%.

Including treasury bonds and other products, its distributed assets are worth more than US$3.59 billion. However, the tokenized stock sector alone is the core growth driver.

Despite the influx of Ondo's competitors, the momentum is still clear. Monthly transfers and the number of holders continue to climb as more traders discover round-the-clock access to blue chips and ETFs.

New players such as Robinhood, Backed Finance and Binance's bStocks have eroded Ondo's dominance, but it continues to launch new listings and partnerships. Although competition has intensified as new issuers enter the market, Ondo remains the leading tokenized stock platform.

Issuers chase US$150 trillion in stock market

Real World Asset (RWA) issuance teams are currently racing to bring approximately US$150 trillion in global stock markets onto the chain. Their goal is to tokenize everything from technology giants to widespread ETFs.

As the number of tokenized shares on the chain increases, traders can trade these assets without permission while enjoying benefits and faster settlement speeds.

Although billions of dollars worth of tokenized stocks are already distributed across different networks, they still account for only a small portion of the entire RWA market. However, tokenized stocks are one of the fastest-growing categories of crypto assets.

Ethereum, BNB Chain and Solana host most of the activity, but newer networks such as Robinhood Chain are also gaining attention.

Growth in this sector has been compared to the early stages of stablecoin adoption in 2019. However, tokenized stocks reached a milestone within a few months that took stablecoins years to achieve.

In addition, market commentators speculate that the passage of the CLARITY Act will serve as a catalyst for crypto adoption. Its adoption curve is similar to that of a stablecoin: it starts slowly and then grows rapidly as its practicality increases.

DeFi investors are quickly turning to this area to capture excess returns. As the sector matures, investors mingle, trade and use these tokens as collateral, while underlying stocks move in real time.

According to the latest RWA.xyz data, the real-world asset (RWA) sector continues to expand, with the value of distributed assets increasing by 3.96% last month to US$36.81 billion. At the same time, the total number of holders in nine different asset classes surged 37.8% in one month to more than 1.35 million.

What is the next step in RWA tokenization

The tokenized stock sector is gaining momentum, but it is still in its early stages. The adoption of tokenized stocks is accelerating as issuers expand product catalogs and distribution channels through wallets and exchanges such as MetaMask. Regulatory clarity and improvements in institutional infrastructure such as the DTCC pilot have also added impetus to this trend.

Ondo and its competitors have positioned tokenized stocks as the core RWA game. A market value of $2.4 billion marks progress, not a ceiling.

Traders who entered early have already taken advantage of the rally, and the next stage depends on how quickly the $150 trillion market moves into the chain.