What exactly is the hot trend of stock tokenization right now?

Blockchain Headlines

The wave of stock tokenization sweeps the globe: from technological practices to ecological transformations, ushering in a new era of financial "on-chain".
1. Concept and Trends: The Definition of Stock Tokenization and the Global Trend
• Core Definition: Stock tokenization is the representation of ownership of a company or asset through blockchain digital tokens, converting traditional stocks into cryptocurrencies that can be traded on-chain, aiming to lower global investment barriers and allow investors easy access to previously hard-to-reach assets.
• Global trend: From the United States to Hong Kong, the wave of stock tokenization is sweeping the global financial market. The integration of traditional stocks and blockchain has moved from concept to practice, becoming one of the core directions of financial innovation.
II. Market Dynamics: Leading Platforms and Trading Data
1. Ondo Global Markets: Launching the "Wall Street 2.0" Initiative
• Launch and Expansion: Officially launched on September 3rd, it has landed on Ethereum and will soon expand to BNB Chain, Solana, Ondo Chain, and other networks.
• Trading Performance: In the last 24 hours, the trading volume of tokenized US technology stocks was led by Nvidia ($164 million), Google ($103 million), and Tesla ($88 million).
• New Assets: Figma, AMD, S&P 500 ETF and other tokenized stock trading have been added, providing over 100 types of tokenized US stocks and ETFs for non-US investors with around-the-clock instant access (subject to jurisdictional restrictions).
• Future Plan: Launch the "Wall Street 2.0" initiative, with the first batch of hundreds of tokenized stocks going live, expecting to exceed a thousand by the end of the year, creating the world's first large-scale stock on-chain trading ecosystem.
2. Market Landscape: Early Stage and Leading Share
The current tokenized stock market is in its early stages, with products such as bCSPX, bCOIN, and bNVDA issued by Backed accounting for nearly 90% of the value of tokenized stocks.
3. Typical Cases: The Practical Exploration of Chinese and Foreign Enterprises
1. US Case: Galaxy Digital's SEC Registered Stock Tokenization
• Cooperation and Operations: Nasdaq-listed company Galaxy Digital collaborates with Superstate to tokenize its SEC-registered stock GLXY on the Solana blockchain.
• Core Features: This is the first publicly listed company to directly tokenize SEC-registered stock on a major blockchain, with the tokens representing actual Class A common shares, possessing full shareholder rights; Superstate, as the SEC-registered transfer agent, can instantly record legal ownership on-chain when tokens are transferred.
• Differences from traditional: It is not a derivative or merely a representative asset, but a native stock tokenization that directly collaborates with the company.
2. Hong Kong Case: Fosun's $328 million practice
• Project Content: Fosun Wealth Holdings will tokenize the stocks of Sisram Medical (Fosun Rui Medical Technology, an Israeli medical technology company) listed in Hong Kong, with a value of $328 million.
• Technical support: Utilizing Vaulta's "banking operating system" and integrating Solana into the issuance and settlement technology stack is a significant case of tokenization of shares for a Hong Kong listed company.
4. Operating Mechanism: Three Key Links
1. Asset Anchoring: Actual shares are held as reserves by trusted custodians or brokers, and a corresponding number of tokens are issued on the blockchain to ensure that the tokens are linked to real assets.
2. Compliance Design: Regulatory rules are embedded through smart contracts, allowing only qualified investors who have passed KYC/AML verification to hold and trade Tokens, ensuring compliance.
3. Transaction settlement: Tokens can be bought and sold like cryptocurrencies, with their value linked to real stock prices. The settlement process is almost instantaneous, greatly enhancing trading efficiency.
5. Innovative Models and Industry Impact
1. Ondo's innovative design
• Physical stocks held by U.S. brokerages as collateral, allowing overseas investors to instantly mint and redeem tokens.
• Directly connect to the liquidity of the stock exchange (instead of creating a new on-chain fund pool), ensuring a 1:1 correspondence with real stocks, and automatically triggering offline synchronization operations by brokers for on-chain transactions, balancing liquidity and large-scale on-chain capabilities.
2. Industry Significance
Stock tokenization is driving on-chain transformation in the financial world, opening up more efficient, transparent, and global financial markets. In the future, it is expected to further break down traditional financial barriers and reshape the ecology of stock holding and trading.