Tokenized Assets Defy Traditional Market Trends, Surpassing $34 Billion in Value

Tokenized assets are not always mirroring traditional markets, according to a recent report from Dune. The report compared on-chain and off-chain activity across equities, credit, commodities, and cash-equivalent products.

The study found that tokenized equity spot supply is heavily skewed towards single stocks, with 81% of the market comprised of individual company tokens, while exchange-traded funds (ETFs) make 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 value of tokenized real-world assets reached $34.5 billion as of August 31, a significant increase of over 140% from the previous year. Cash equivalents still dominate supply, but equities are the most actively traded segment. Binance Research estimated that tokenized equities could reach around $349 billion by 2030 under its base-case scenario.

US regulators and exchanges have also taken steps to expand tokenized trading. The US Securities and Exchange Commission granted a temporary exemption for limited on-chain trading of tokenized US-listed stocks, while the New York Stock Exchange and Blockchain.com announced plans to offer tokenized US-listed stocks and ETFs through NYSE's digital trading platform.