Tokenized Stocks Hit Record $3.9 Billion Market Cap

The global market for tokenized stocks and equities has reached a record high of $3.9 billion. According to data from Token Terminal, blockchain-based real-world assets have grown more than fivefold since January, when the sector was valued at just $719 million. This expansion is a change in how digital asset buyers are gaining exposure to traditional corporate markets.

Three blockchain networks currently control roughly 70 per cent of this expanding industry. BNB Chain leads the sector with a market capitalization of $1.2 billion. Ethereum follows in second place with $841.9 million, while Solana ranks third, holding $741.7 million. These networks have emerged as the primary infrastructure providers for minting and trading digital versions of traditional company shares.

READ ALSO: Teng Says bStocks Bring Tokenized Stocks Beyond Market Hours

Privacy, ownership and stablecoin risks facing tokenized stock investors

As tokenized stocks grow, investors may gain access to markets around the clock, but there is a risk of privacy as other people may be able to see what they buy and sell. 

Their name may not be visible at first, but wallet activity can sometimes be linked to their identity through other records.

The SEC’s Investor Advisory Committee has also raised concerns about protecting investors’ personal information when they hold tokenized shares. In the 2016 Bitfinex hack, investigators followed Bitcoin transactions on the public blockchain and later seized more than 94,000 stolen Bitcoin. The case involved stolen funds, not tokenized stocks, but it shows that blockchain transactions can be tracked. 

Social media user @Sirius also raised this concern, arguing that public blockchains may be useful for moving money quickly but are less suitable for investors who want to keep their holdings private.

Also, tokenized stock investors could also face difficulties recovering their money if the platform fails. In July 2025, SEC Commissioner Hester Peirce warned about the risks of third-party tokens when buyers do not legally own the shares behind them.

X commentator  @Web3lawyer argued that tokenized stocks can represent claims on shares held by a custodian rather than direct ownership recorded in a company’s shareholder register. The user added that dividend payments and voting rights remain subject to corporate law, while the blockchain mainly handles the digital token.

Stablecoins are also another part of the market. Investors often use digital currencies pegged to the US dollar to fund crypto purchases, including tokenized assets. X user @Rain highlighted the importance of stablecoin growth, especially when that money also funds new projects across the crypto market. As tokenized stocks grow, the growth of stablecoins could influence how easily investors move money into and around these markets.

Where this leaves everyday investors

Tokenized stocks could change the amount needed to enter the stock market. Since tokenization allows investors to buy fractions of expensive shares, lowering the amount of money required to invest in companies such as Apple or Amazon. This could help people with limited savings gain exposure to companies they might otherwise struggle to afford. However, owning a smaller portion of a stock does not make the investment safer. If the share price falls, the investor’s money can still lose value.

Trading costs are another factor investors must consider. Tokenized stocks may reduce certain brokerage expenses, but investors could still face platform charges, blockchain transaction fees and differences between a token’s price and the underlying share price. These costs can eat into returns, particularly for people making frequent, small transactions.

Finally, investors must consider how easily they can turn their holdings back into cash. Buying a token does not guarantee that a buyer will always be available when they want to sell. If trading activity dries up, an investor may have to accept a lower price or wait to exit.

In another development, Gate expanded its crypto derivatives market with the launch of eight new tokenized stock perpetual futures contracts, giving traders additional exposure to major U.S. companies through its USDT-margined futures platform.

 

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