Tokenized Markets Show Distinct Patterns from Traditional Ones

A new report from Dune highlights the differences between tokenized markets and traditional ones. Tokenization allows investors to have more control over their investments by reducing their dependence on local intermediaries' offerings, as Armand Khatri, head of ecosystem at Ondo Finance, puts it.

The report found that single stocks make up 81% of tokenized equity spot supply, while exchange-traded funds (ETFs) account for 19%. This is in contrast to traditional markets, where ETFs play a more significant role. The value of tokenized real-world assets reached $34.5 billion as of August 31, a 140% increase from the same time last year.

Cash equivalents still dominate supply, while equities are the most actively traded segment. However, it's worth noting that tokenized equities remain a fraction of global markets, with Binance Research data putting the market at $4.43 billion as of September 15, equivalent to just 0.0029% of the $151.9 trillion global listed-equity market.

Binance co-CEO Richard Teng believes that tokenization could change how investors access equity markets, but that it won't happen overnight. The US Securities and Exchange Commission has granted a temporary exemption allowing limited on-chain trading of tokenized US-listed stocks, while the New York Stock Exchange and Blockchain.com have announced plans to offer tokenized US-listed stocks and ETFs through NYSE's planned digital trading platform.