Tokenized Assets Defy Traditional Market Trends

A new report by Dune has found that tokenized assets exhibit different trading and investment patterns compared to traditional markets. The analysis looked at onchain and off-chain activity across various asset classes, including equities, credit, commodities, and cash-equivalent products.

In the equity market, single stocks accounted for 81% of tokenized equity spot supply, while exchange-traded funds (ETFs) made up only 19%. Armand Khatri, head of ecosystem at Ondo Finance, noted that tokenization gives investors more control over asset selection by reducing their dependence on local intermediaries' offerings.

The total value of tokenized real-world assets was found to be $34.5 billion as of August 31, a significant increase of over 140% from the previous year. However, despite this growth, tokenized equities remain a small fraction of global markets, with Binance Research estimating that they currently make up only 0.0029% of the $151.9 trillion global listed-equity market.

US regulators and exchanges are also taking steps to expand tokenized trading, with the US Securities and Exchange Commission granting a temporary exemption for limited onchain trading of tokenized US-listed stocks.