with the approval of Bitcoin and Ethereum ETFs, the boundary between crypto and traditional finance is blurring. Tokenized stocks—an innovation that brings equity assets on-chain—are gaining traction. By converting company shares into blockchain-tradable tokens, this model bridges traditional finance and crypto. From Coinbase pioneering its own stock tokenization on Base (Ethereum L2) to Wall Street giants accelerating their involvement, signs suggest a new era of on-chain equities is quietly dawning. But is this a bubble or the next trillion-dollar opportunity?

Below is the original article from on-chain analytics platform Santiment, compiled by Odaily:

Are tokenized stocks a viable investment? At their core, they merge traditional equity value with blockchain’s technical advantages. Unlike stocks held in brokerage accounts, tokenized stocks are blockchain-based digital tokens pegged to real-world shares. This allows fractional, low-barrier investing, democratizing access to markets once restricted by capital requirements.

In early 2025, Coinbase announced it would issue a tokenized version of its stock on Base, its Ethereum L2. This move signaled mainstream crypto’s embrace of the trend—and accelerated the fusion of TradFi and blockchain.

Traditional stock trading faces delays (e.g., T+2 settlement) and limited hours. Tokenized stocks solve this with:

• Instant settlement via blockchain, enabling rapid response to market shifts.

• Platforms like AlloX now offer dedicated markets for tokenized stocks, featuring 24/7 trading, lower fees, and on-chain清算—rewriting the rules of time and cost.

It’s not just crypto natives. Traditional institutions are diving in:

• Citi partnered with Swiss Digital Exchange (SDX) to tokenize private company shares, opening venture capital to global investors.

• JPMorgan has launched on-chain tokenized asset products, proving the trend’s legitimacy.

By April 2025, the tokenized stock market cap surpassed $350 million, with experts projecting a path to $1 trillion. While regulation remains gray, the U.S.’s pro-crypto stance and the EU’s clear frameworks are boosting confidence—and institutional inflows.

For crypto investors, tokenized stocks aren’t just diversification—they’re risk management tools. Swapping volatile assets like Bitcoin for tokenized equities (e.g., Apple or Tesla shares) can balance portfolios.

Example: Backed Finance’s $wbCOIN (a tokenized Coinbase stock) went viral on X, amassing 595k interactions. Its features—full collateralization, transferability, and legal equity rights—showcase market demand.

Companies are exploring tokenized stocks for capital-raising. Compared to traditional IPOs, this model lowers barriers and invites global participation.

Pioneers like BlackRock and JPMorgan have already rolled out tokenized products, hinting that this isn’t just a crypto novelty—but the future of cross-border finance.

Tokenized stocks won’t replace traditional markets but will connect them to crypto. They offer TradFi investors a gateway to blockchain, while giving crypto users real-world asset exposure.

Just as Bitcoin ETFs unlocked institutional capital, tokenized stocks could become the next liquidity pipeline—and crypto’s ticket to mass adoption.

Final Thought:
"Tokenization doesn’t disrupt markets; it unites them." —@brianq