Tokenized stocks reached $3.53 billion on October 25, reflecting a broader push by Wall Street to move established financial assets onto blockchain networks. The market includes 4.42 million holder addresses and $10.26 billion in monthly transfers, according to data from RWA.xyz.
The figures represent activity across the market rather than fresh inflows, and holder addresses do not necessarily correspond to individual investors. Nevertheless, the scale demonstrates substantial institutional engagement with blockchain-based finance.
Regulatory Framework Takes Shape
In September, the U.S. Securities and Exchange Commission granted temporary, conditional exemptions for venues trading tokenized equities. Operators must preserve shareholder rights equivalent to traditional stocks, notify issuers of tokenization plans, and honor company objections.
The regulatory framework distinguishes tokenized stocks that convey actual ownership from price-tracking products without shareholder claims. This distinction shapes how Wall Street can structure blockchain proposals for investors.
Company Objections Limit Venue Expansion
OKX and Intercontinental Exchange proposed placing 63 companies on blockchain through OKXICE. By October 23, 22 companies had objected, including Microsoft, Alphabet, Goldman Sachs, and Wells Fargo. The objections limit that particular venue's rollout without preventing tokenized stock offerings elsewhere.
Separately, Nasdaq plans to offer 23-hour weekday stock trading beginning December 6, pending regulatory and operational readiness. Extended trading hours do not require stocks to be tokenized.
Bonds and Deposits Accelerate Tokenization
Hong Kong issued approximately $2.6 billion in digital green bonds on September 28, with the Hong Kong dollar tranche settling through tokenized bank deposits. Luxembourg followed on October 14 with a €1.7 billion sovereign bond carrying a 3.70% coupon on Clearstream's D7 platform.
JPMorgan launched an Ethereum-based deposit token for institutional clients on October 19 following earlier deployment on Base. Franklin Templeton added $150 million in Singapore money-market fund shares to the XRP Ledger, though the shares were held in a single wallet, making it difficult to determine the number of underlying investors.
Market Characteristics and Challenges
The International Monetary Fund found that nearly 80% of tokenized stocks trades involved fractional shares, indicating demand for smaller position sizes. The IMF warned about fragmented liquidity and technology risks, underscoring challenges as tokenization expands across Wall Street.
