Tokenized Equities Surge on QQQB, But Concentration Risk Lingers

The tokenized QQQ product, QQQB, drove nearly quadrupled trading volume in July, accounting for 288% of decentralized secondary-market volume. This was a significant surge, but it also highlights a concentration risk: the market has not diversified beyond one index product.

QQQB is a tokenized representation of the QQQ exchange-traded fund (ETF), which tracks the Nasdaq-100 index. It offers 24/7 trading, unlike its underlying ETF counterpart, which trades only during specific hours. This accessibility was key to its success, particularly for global traders.

Robinhood Chain is betting on tokenized equities, launching a rollup optimized for settlement on Arbitrum in Q2 2026. The company's thesis is that stocks can be represented as tokens and settled on a blockchain, allowing for faster trading and settlement around the clock. However, the gas subsidy on Robinhood Chain will end by September, raising questions about whether demand will persist without it.