Equity markets are undergoing a transformation. In 2025, tokenized stocks have moved from niche experiments to emerging financial products, reshaping how investors interact with equities. By representing shares of real companies like Tesla or Apple as blockchain-based tokens, tokenized stocks allow fractional ownership, 24/7 global trading, and integration into decentralized finance (DeFi).
The 2025 RWA report highlights tokenized stocks as a growing part of the real-world asset (RWA) tokenization wave 1758272317356. Platforms such as Ondo Global Markets and xStocks are pioneering these innovations, providing new access points for both retail and institutional investors.
But what are tokenized stocks? How do they work? Are they safe? And what does their future look like? This article provides a comprehensive answer, combining industry data, platform insights, and regulatory perspectives.
What Are Tokenized Stocks?
According to Cryptopedia (July 2025), tokenized stocks are blockchain-based digital assets designed to mirror the value of real-world equities like Apple, Tesla, or Amazon. Depending on how they are structured, they may represent:
- Custodial-backed tokens: A regulated custodian holds real shares and issues tokens 1:1.
- Synthetic or derivative tokens: Tokens that track stock price through contracts, without direct ownership.
Key features:
- Fractional ownership (buy $10 worth of Tesla instead of a whole share).
- Round-the-clock trading beyond NYSE/NASDAQ hours.
- Smart contract settlement, often faster than T+2 settlement cycles.
- Potential access to dividends or voting rights, depending on issuer.
In short: tokenized stocks bring traditional equities onchain, enabling investors to gain exposure without leaving the crypto ecosystem.
The Growth of Tokenized Equities
Data & Market Context
While tokenized treasuries and private credit dominate the RWA landscape, tokenized equities are gaining traction 1758272317356:
- xStocks: A retail-oriented platform offering fractionalized blue-chip equities.
- Ondo Global Markets: Expanding tokenization into equities, ETFs, and institutional products.
- Integration with DeFi: Tokenized stocks are starting to appear in lending pools, yield strategies, and cross-chain protocols.
According to the RWA report1758272317356, tokenized stocks are still a smaller segment compared to treasuries (~$7B+) or private credit, but they represent a critical bridge between traditional equities and onchain finance.
How Tokenized Stocks Work
Step 1: Custody or Derivative Setup
- A custodian (bank, broker, or regulated entity) purchases and holds the real shares.
- Alternatively, a derivative contract replicates the stock’s price performance.
Step 2: Token Issuance
- Tokens are minted on a blockchain like Ethereum or Solana.
- Each token mirrors a share or fraction of a share.
Step 3: Trading & Use
- Tokens are bought/sold on crypto exchanges or RWA platforms.
- Smart contracts enforce minting/burning and supply rules.
- In DeFi, these tokens can be collateralized or pooled for yield.
Important Note: Ownership rights vary. In some cases, investors have economic exposure only (no voting rights, dividends). In others, dividends are distributed onchain proportionally.
Platforms Leading the Charge
Ondo Global Markets
- Institutional-grade RWA platform branching into equities.
- Known for tokenized treasuries, now expanding into ETFs and stocks1758272317356.
- Offers compliant, audited structures—appealing to banks, hedge funds, and asset managers.
- Focused on building DeFi integrations so tokenized equities can act as collateral in lending markets.
xStocks
- Retail-first platform democratizing stock access globally.
- Allows fractional ownership of equities for as little as a few dollars.
- Operates 24/7, catering to investors who can’t access U.S. brokerages.
- Integrates with DeFi protocols for liquidity and yield1758272317356.
Advantages of Tokenized Stocks
- Fractional Ownership
Buy micro-slices of high-value stocks like Tesla or Google, lowering entry barriers. - 24/7 Markets
Trade anytime, regardless of NYSE/NASDAQ hours. Perfect for global investors. - Cross-Border Access
Bypasses traditional brokerage restrictions; emerging markets gain exposure to U.S. equities. - DeFi Integration
Tokenized stocks can be collateralized, yield-bearing, or included in onchain portfolios. - Faster Settlement & Transparency
Blockchain transactions settle in minutes, recorded immutably.
Risks and Challenges
- Regulation
Tokenized stocks are often treated as securities, limiting access. In the U.S., most are not available to retail investors【user-provided article】. - Custody Risks
Investors rely on custodians or synthetic issuers. Transparency is key: Are shares really held? Are audits public? - Liquidity Constraints
While markets are open 24/7, actual trading volumes remain low compared to NASDAQ. - Dividend Rights
Some platforms pass dividends; others don’t. Investors must read issuer policies. - Tech Risks
Smart contract vulnerabilities, hacks, and oracle issues can impact token value.
The Future of Tokenized Stocks
- Institutional Adoption: If BlackRock can tokenize treasuries, equities may follow.
- Hybrid Markets: Traditional exchanges may adopt blockchain rails, merging token liquidity with equities.
- Emerging Market Growth: Retail investors in Asia, Africa, and Latin America will fuel demand.
- Portfolio Diversification: Tokenized stocks will sit alongside tokenized treasuries, commodities, and real estate, enabling fully onchain investment portfolios.
FAQ – People Also Asked
Q1. What are tokenized stocks?
A: Blockchain tokens that track the price of real-world equities, often backed 1:1 by shares or replicated synthetically.
Q2. Where can I buy tokenized stock?
A: Platforms like Ondo Global Markets (institutional) and xStocks (retail) 1758272317356. Availability depends on regulations.
Q3. What companies offer tokenized stocks?
A: Tesla, Apple, Amazon, and Google are common examples.
Q4. Are tokenized stocks safe?
A: They can be safe if backed transparently by custodians, but risks include regulatory changes, liquidity, and smart contract vulnerabilities.
Q5. Who is the leader in tokenization?
A: BlackRock in treasuries; Ondo Global Markets and xStocks in equities.
Q6. Do tokenized stocks pay dividends?
A: Sometimes—depends on platform and legal structure. Many synthetic versions do not.
Q7. Is tokenization a good investment?
A: Tokenization is a method, not an asset. Tokenized stocks offer access and flexibility, but investors must weigh risks.
Q8. What is Tesla tokenized stock?
A: A blockchain token representing a fraction of Tesla Inc. stock, tradable 24/7, offering exposure to Tesla’s price movements.
