# Are ETFs Yesterday's News? Tokenized Stocks Are the Future

*The greatest value of tokenized stocks lies in "connection" and "hedging."*

By [Exploring the public blockchain](https://paragraph.com/@discussion-on-encryption-field) · 2025-05-21

etf

---

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:

* * *

### **Introduction: What Are Tokenized Stocks?**

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.

* * *

### **Core Advantages: Speed and 24/7 Liquidity**

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.
    

* * *

### **Wall Street Joins the Fray: From Theory to Practice**

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.

* * *

### **A "Stabilizer" for Crypto: One-Click Hedging**

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.

* * *

### **Corporate Adoption: A New Fundraising Paradigm**

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**.

* * *

### **Conclusion: Bridging Two Worlds**

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

---

*Originally published on [Exploring the public blockchain](https://paragraph.com/@discussion-on-encryption-field/are-etfs-yesterdays-news-tokenized-stocks-are-the-future)*
