After the tokenization of U.S. Treasury bonds, tokenized stocks are becoming the new battlefield for RWA

Written by: 100y_eth

Compiled by: AididiaoJP

Key Points

Unlike the recently stagnant market for tokenized U.S. Treasury bonds, the tokenized stock market is experiencing rapid expansion in both quantity and quality.

From traditional stock infrastructure providers, fintech companies, cryptocurrency exchanges to Web3 native platforms, all parties view tokenized stocks as the next significant opportunity in the RWA industry. In fact, there are various paths for stock tokenization, and understanding their respective advantages, disadvantages, and positioning is crucial.

This article will analyze the strategies of different players from various backgrounds, including Securitize, Ondo, xStocks, Robinhood, DTCC, NYSE, Nasdaq, and Coinbase.

Everyone is Eyeing Tokenized Stocks

Today, regulators, banks, institutions, fintech companies, and almost all major market participants are showing strong interest in tokenization. However, the term "tokenization" has only recently become a focal point. The primary asset driving the growth of the tokenization market in its early stages was undoubtedly U.S. Treasury bonds. Its rapid growth relied on three factors: the safety of U.S. government debt, a relatively simple tokenization structure, and the higher yields at that time.

The market for tokenized U.S. Treasury bonds grew from $701 million on January 1, 2024, to over $15 billion for the first time on April 17, 2026, with an astonishing annual compound growth rate of approximately 3.81 times. However, after surpassing $15 billion, the market has been hovering around this level, with growth significantly slowing down. Considering that a large portion of the demand for tokenized U.S. Treasury bonds comes from DeFi protocols or exchange margin scenarios, it is not surprising that demand has stagnated in the recent unfavorable market environment.

At the same time that the momentum for tokenized U.S. Treasury bonds has weakened, another tokenization track is rapidly emerging from both quantity and quality—tokenized stocks. The market size grew from $291 million on January 1, 2025, to approximately $1.9 billion in just a year and a half, a 6.5-fold increase. From an industry perspective, whether it is Web3 native players like Securitize and Ondo Global Markets, financial companies like Robinhood and Coinbase, or financial infrastructure providers like DTCC, NYSE, and Nasdaq, they have either launched tokenized stocks or are actively preparing to do so.

What advantages do tokenized stocks have over the traditional stock market that make almost all major U.S. players view it as the next significant opportunity? At first glance, tokenized stocks seem straightforward, but in practice, various tokenization structures can emerge depending on the regulatory framework adopted, each bringing different advantages. To understand these differences, it is essential to clarify the SEC's classification framework for tokenized securities.

SEC's Classification Framework for Tokenized Securities

In January of this year, the SEC released a statement proposing a classification framework for tokenized securities.

First, based on whether the tokenization entity is the issuer itself or a third party, it is divided into "Issuer-Sponsored Tokenized Securities" and "Third Party-Sponsored Tokenized Securities."

Third Party-Sponsored Tokenized Securities are further subdivided: if the rights associated with the underlying securities are tokenized, it is called "Custodial Tokenized Securities"; if only a separate tokenized product is issued, linked only to the price, yield, events, or other characteristics of the underlying securities, it is called "Synthetic Tokenized Securities."

Synthetic Tokenized Securities are further classified by product type: if a third party issues independent securities (such as debt securities), it is called "Linked Security"; if a derivative contract is signed, it is called "Security-Based Swap."

Ultimately, under this framework, tokenized securities can be divided into the following four categories, which also apply to tokenized stocks:

• Issuer-Sponsored Tokenized Securities: Tokenization and operation of securities directly by the stock issuer itself or its designated agent (such as a transfer agent). The issuer (or its agent) connects DLT systems like blockchain to the official shareholder register to maintain shareholder records. This method does not fundamentally change the existing legal framework and directly complies with current securities laws. The biggest advantage is that all shareholder rights, including ownership, are inherited by the token. However, strict compliance requirements may limit availability to some extent. Major representatives: Securitize, Superstate, Figure.
• Custodial Tokenized Securities: A third party tokenizes the securities rights (indirect rights) held by custodians (such as DTCC) or brokers. It can also inherit all related rights but is highly dependent on existing stock market infrastructure, with ownership remaining indirect and limited improvements to the traditional system. Major representatives: DTCC; Ondo has recently tokenized IVV and MU using this method.
• Linked Securities: A third party issues and tokenizes an independent security (such as debt securities), providing synthetic exposure to the underlying stock. Token holders only gain exposure to price performance and do not inherit other shareholder rights. The biggest advantage is high flexibility for on-chain use. Major representatives: Ondo, xStocks, Robinhood Stock Tokens.
• Security-Based Swaps: A third party issues derivative contracts providing synthetic exposure to the underlying stock and then tokenizes the contract. Like linked securities, it only provides price-related exposure and does not inherit other rights. Currently, almost only Robinhood Classic Stock Tokens are a major case.

Analysis of Major Tokenized Stock Platforms

Securitize: Taking the Most Direct Route

Securitize is currently the largest tokenization platform by market share, with a tokenized RWA scale of $5.1 billion, and its flagship product is BlackRock's money market fund BUIDL. Securitize holds SEC-registered broker-dealer, transfer agent, and ATS licenses, leveraging these regulatory advantages to adopt a "direct tokenization of securities" model. According to SEC classification, it falls under "Issuer-Sponsored Tokenized Securities."

Recently, Securitize has also expanded this model to tokenized stocks. When it went public through a SPAC with its stock SECZ, it used its own services to tokenize and issue $180 million of SECZ on-chain.

The advantages of this model are clear: existing stocks can be tokenized as they are while fully complying with current securities laws. Investors first register ownership directly through DRS for stocks previously held through DTCC or brokers, and then Securitize tokenizes these stocks as a transfer agent. The result is that the stock tokens share the same CUSIP as existing stocks, inheriting not only economic rights but also voting rights, claims to remaining assets in bankruptcy, and all related rights.

However, because the tokenized stocks are essentially another form of the same stock, it brings corresponding drawbacks. The most important is the strict compliance requirements, which limit on-chain use. Unlike the tokenized stocks from Ondo or xStocks, Securitize's stock tokens can only be transferred between whitelisted wallets that have undergone KYC/AML, and on-chain interactions can only occur with a limited set of smart contracts pre-approved by the team.

How does Securitize enforce KYC/AML compliance on-chain? The answer is the DS Protocol. This is a set of smart contracts developed by Securitize that enforces compliance throughout the entire lifecycle of tokenized securities (issuance, transfer, use, voting, dividends) through code. Four Pillars has previously conducted an in-depth research report on the DS Protocol, which is also included on Securitize's official website. Readers interested in understanding how tokenized securities operate at the smart contract level can refer to that report.

Platforms that tokenize stocks in a similar manner include Superstate and Figure. They both tokenize as transfer agents, with the main difference being the type of stocks tokenized: Securitize and Superstate tokenize shares that are identical to existing stocks through the DRS system, while Figure issues blockchain-native classes of shares separately and then tokenizes those shares.

Ondo and xStocks: Expanding the Ecosystem through Broad Accessibility

Ondo and xStocks adopt a structure where, when users order stock tokens, an offshore SPV acquires the underlying stocks and then issues tokenized debt securities backed by those stocks.

For example, xStocks has a Jersey-regulated SPV—Backed Assets (JE) Limited. When users request the issuance of stock tokens through the platform, the SPV purchases the underlying stocks via U.S. Alpaca Securities and places them in a segregated account at a regulated custodian. The SPV then issues independent debt securities backed by these stocks, which are tokenized and delivered to users.

This structure falls under the SEC classification of "Linked Securities."

Currently, Ondo has tokenized 406 different stocks, with a total value of approximately $851 million; xStocks has tokenized 183 stocks, worth about $482 million. Their market shares in the tokenized stock sector are 45.9% and 26.0%, respectively, firmly holding the top two positions.

The key to their rapid growth lies in the broad accessibility brought by the tokenization structure. Strictly speaking, they do not tokenize the stocks themselves but rather tokenize debt securities issued by third parties that are backed by stocks. Therefore, compared to the issuer-led model of directly tokenizing existing stocks, this structure has looser compliance requirements for distribution and secondary trading, allowing users to trade and use the tokenized stocks issued by Ondo and xStocks more freely on CEX and on-chain DeFi protocols. For instance, anyone can trade xStocks using a Web3 wallet through Jupiter DEX, or deposit them into lending protocols like Kamino as collateral to borrow stablecoins.

However, this indirect tokenization also brings problems: even if the underlying assets are the same, tokens issued by different platforms are not interoperable, leading to fragmented liquidity. For example, both backed by Nvidia stock, Ondo issues NVDAon, while xStocks issues NVDAx, and the two cannot interoperate. Additionally, due to reliance on Regulation S, U.S. investors and individuals cannot use them.

To address these limitations, Ondo recently acquired Oasis Pro, obtaining broker-dealer, ATS, and transfer agent licenses, and is moving towards a more compliance-friendly tokenization model. In fact, Ondo has already used these licenses to tokenize IVV ETF shares and MU stocks held in brokerage accounts through the "Custodial Tokenized Securities" model, demonstrating the potential for parallel multi-structure.

Robinhood: Can the Latecomer Gain Traction?

Another significant new player in the tokenized stock ecosystem is Robinhood. In fact, it has long provided tokenized stock services to European investors through Classic Stock Tokens, but according to SEC classification, that structure falls under "Security-Based Swaps": Robinhood signs derivative contracts with users based on stocks and then tokenizes the contracts into receipt tokens. The entire structure is highly closed and can only be used within the Robinhood App.

On July 1, 2026, Robinhood launched a brand new Stock Tokens service. Its tokenization structure adopts the "Linked Securities" model, which is almost identical to those of Ondo and xStocks, with similar advantages and disadvantages.

While the structure is the same, the potential that Robinhood brings is clear: its product DNA and large existing user base. Along with the launch of Stock Tokens, Robinhood also introduced the Robinhood Chain mainnet centered around Stock Tokens. U.S. users can also deposit stablecoins into Morpho on the Robinhood Chain through the Robinhood App to earn 7% interest. Although it entered the market later than Ondo and xStocks, Robinhood still has the opportunity to scale quickly due to its product iteration capabilities and ecosystem expansion potential.

DTCC, NYSE, Nasdaq: Signals of Financial Infrastructure Reshaping

The consideration of stock tokenization is not limited to platforms and companies. Traditional settlement and trading infrastructure providers that play a key role in the stock market—DTCC, NYSE, Nasdaq—are also moving towards tokenization.

DTCC's DTC has received a no-action letter from the SEC, allowing it to tokenize some securities held by DTC on a pre-approved blockchain. DTC hopes to enhance collateral liquidity, extend trading hours, improve operational and settlement efficiency, and achieve programmability and real-time auditing through this. On July 15, DTCC also conducted limited tokenization of securities such as QQQ and SPY in a real securities infrastructure environment, successfully completing transactions and collateral transfers.

In April 2026, the NYSE submitted a rule change proposal to the SEC to support DTC's tokenization pilot, allowing stocks to be settled in tokenized form. Additionally, the NYSE is developing a new regulated exchange—Digital Trading Platform—aiming to enable 24/7 trading of U.S. stocks and ETFs using blockchain infrastructure and support stablecoin deposits. In March 2026, the NYSE also signed a memorandum of understanding with Securitize, designating Securitize as the first potential digital transfer agent for this new platform.

Nasdaq received SEC approval for a rule change in March 2026, allowing stocks in DTC's tokenization pilot to be traded and settled in tokenized form. Nasdaq has also partnered with Kraken's parent company Payward to design gateway services that enable issuers and investors to transfer stocks between the regulated Nasdaq market and unlicensed blockchain environments.

Coinbase: Which Path Will It Take?

The last player worth noting is Coinbase. Currently, it has not launched tokenized stock services, but it has expressed intentions to do so multiple times since last year. In February, Coinbase launched 5×24 trading of traditional stocks in the U.S.; at an event in June, it announced that it would soon offer tokenized stocks.

The industry is highly focused on what structure Coinbase will use to tokenize stocks. Coinbase has stated that its service will not only achieve a 1:1 backing of tokens to real stocks but will also provide shareholder rights, although the specific structure has not been detailed. More critically, it has explicitly stated that these stock tokens can be used on-chain while not being open to U.S. customers.

If it adopts an issuer-led structure, the tokens would typically inherit all shareholder rights and be open to U.S. customers, but on-chain availability would be relatively limited. The combination of "broad on-chain availability + exclusion of U.S. customers" seems more aligned with a third-party structure (such as linked securities). It will be worth observing which structure Coinbase ultimately uses to tokenize stocks and how it leverages its exchange infrastructure to expand the tokenized stock ecosystem.

Competing on the Same Battlefield

The goal of financial services is clear: to enable anyone, anywhere, at any time, to trade all types of assets through a single backend and frontend. Today's financial services appear to be close to this goal, but in reality, integration mostly occurs at the frontend, while the backend remains fragmented.

Stocks, as one of many asset classes, are no exception. From Robinhood, which started with stock trading, to Coinbase, which began with cryptocurrency trading, and traditional stock infrastructure providers like DTCC, NYSE, and Nasdaq, as well as Web3 native players like Securitize, Ondo, and xStocks, the tokenization structures and strategic directions vary, yet they all move towards the same North Star—tokenized stocks.

The key points to observe moving forward are how the U.S. and other jurisdictions view tokenized stocks, how the regulatory framework is implemented, and how these changes will reshape the competitive landscape; as well as whether tokenized stocks can become the next significant catalyst for expanding the entire RWA track after tokenized U.S. Treasury bonds.

The South Korean market is also worth paying attention to: despite high retail trading activity, the development of the RWA industry has been relatively slow. How discussions around tokenized stocks will unfold in South Korea is worth continuous tracking.