The market capitalization of blockchain-based tokenized stocks has surpassed $1.2 billion, according to market data platform Token Terminal. By 2025, the total market capitalization of tokenized securities (STOs) reached roughly $1.2 billion, a new high as trading activity and issuance surged notably in September and December. Analysts say the STO market today resembles the 2020 stablecoin era, when the asset class initially served investor-focused payments and trading before expanding into DeFi, payments, and cross-border remittances. It has grown to roughly $300 billion in size.
LiveBitcoinNews notes that tokenized securities could attract faster participation from traditional financial institutions as regulatory clarity and liquidity improve. Beyond Web3 firms, traditional finance players have entered the STO market. Backed Finance, a real-asset tokenization company, introduced about 60 tokenized securities on its Ethereum-based xStocks platform in September 2024, with the products distributed through major crypto exchanges such as Kraken and Bybit. Nasdaq has filed with the U.S. SEC for trading tokenized securities, and Ondo Finance plans to launch tokenized U.S. stocks on Solana early next year.
Coinbase has also indicated it will add stock trading capabilities on its platform. However, regulatory uncertainty and global consistency remain key concerns. In the United States, regulators have moved quickly to craft rules, with the SEC issuing guidelines that explicitly extend its remit to tokenized securities and require broker-dealers to control private keys to protect customers. Abu Dhabi and parts of the Middle East and Europe have shown openness to tokenized securities.
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