Tokenized Stocks Hit $1.2B ATH as On-chain Equities Scale

Source: CryptoTale Original Title: Tokenized Stocks Hit $1.2B ATH as On-chain Equities Scale Original Link: https://cryptotale.org/tokenized-stocks-hit-1-2b-ath-as-on-chain-equities-scale/ Tokenized stocks reached a new all-time high market value of $1.2 billion, as per Token Terminal data. This shows activity across Ethereum, Solana, and other blockchains, where tokenized public equities trade continuously.

Everyday traders, crypto platforms, and big institutions pushed the growth by rolling out new products, adding more liquidity, and making access easier in September and December. The data shows the growth did not occur gradually. Instead, two sharp expansion periods reshaped the market structure.

These phases followed concrete product launches, distribution partnerships, and regulatory-focused announcements that expanded participation beyond early pilots. As a result, tokenized equities moved closer to exchange-supported financial products rather than isolated experiments.

Market Growth Accelerates Through Product Launches

Token Terminal data identified September and December aligned with launches that improved liquidity and distribution rather than speculative activity. This shift marked a change in how on-chain stocks reached users.

In September, Backed Finance introduced its xStocks suite on Ethereum. The rollout included nearly 60 tokenized public equities. Distribution partnerships with major crypto platforms placed these products directly inside active trading platforms.

This approach reduced friction for users already trading crypto assets. Consequently, trading volumes increased as access widened. Liquidity improved across supported tokens, reinforcing market capitalization growth during the period.

December delivered a second acceleration phase. Several firms outlined plans focused on compliant structures and direct ownership models. These announcements strengthened confidence around custody, settlement, and regulatory alignment.

December’s growth reflected participation expanding beyond initial launches. Instead, multiple providers contributed to market depth. This broader activity suggested tokenized equities were becoming a competitive segment rather than single-product offerings.

Institutional Participation and Market Structure

Big players played a major role in the recent growth. Backed Finance’s launch in September showed how regulated setups can grow quickly by teaming up with exchanges. Investors were able to get blockchain-based exposure, while asset custody and backing still followed familiar compliance rules.

Building on that progress, Securitize announced in December that it would support compliant on-chain trading of public stocks. Instead of using synthetic versions, Securitize focused on real share ownership recorded on official company records. The goal was to make sure shareholder rights were protected while keeping everything within the rules.

It also eased long-standing concerns about investor safety and how assets are held. That’s why it caught the eye of people in the market who want something closer to traditional stocks.

Competition also expanded. Ondo Finance outlined plans to tokenize U.S. stocks and exchange-traded funds on Solana, targeting an early 2026 launch. The choice of Solana highlighted confidence in high-throughput blockchains for regulated financial products.

Crypto exchanges showed similar interest. Certain major platforms disclosed plans to add stock trading as part of their broader platform expansion. Some also referenced stock-based perpetual products, although direct equity tokenization remains complex in some jurisdictions.

Traditional Exchanges and Long-Term Commitment

Beyond crypto-native firms, traditional market operators moved closer to tokenization. Nasdaq confirmed it filed with the U.S. Securities and Exchange Commission to support tokenized stocks. According to CNBC, the exchange views tokenization as a strategic priority.

Matt Savarese, Nasdaq’s head of digital assets strategy, noted that adoption would progress incrementally. The exchange is trying to bring blockchain into the mix without shaking up the way markets already work. Basically, tokenized stocks would sit neatly inside the systems people are already familiar with.

Nasdaq getting involved is a big deal because it’s one of the major players in global stock markets. If this goes through, blockchain-based shares could show up on one of the world’s largest exchanges, which would be a huge step for making them mainstream.

Some places, like Abu Dhabi, are open to tokenized assets, but rules aren’t the same everywhere. Investors and companies still have to figure out different regulations depending on the region.

Tokenized stocks are a mix of old-school stock rules and new blockchain tech. That’s why clear regulations are so important for their growth. Companies like Securitize and Nasdaq stick to the rules, while others are testing out new ways to make it work.

The market capitalization of tokenized stocks is at $1.2 billion. Token Terminal data places the sector at an early stage, despite fast expansion. The growth pattern suggests infrastructure development rather than speculative cycles.

Tokenized stocks reached a $1.2 billion all-time high through exchange-backed launches, institutional participation, and improved regulatory alignment. September and December drove growth as firms like Backed Finance, Securitize, and Ondo Finance expanded access and structure. Nasdaq’s SEC filing, alongside exchange involvement, positioned on-chain equities within changing market frameworks.