Tokenized Stock Market Surges 56%, Liquidity Fragmentation Emerge as Major Issue

The tokenized stock market has grown by an impressive 56% in the last three months, reaching $1.88 billion from $1.2 billion.

This growth is largely attributed to the increased attention on stocks as an asset class due to the rise of AI and semiconductor-related stocks.

There are several channels through which tokenized stock markets are expanding: Linked Securities offered by Ondo, xStocks, Robinhood, etc.; Issuer-Sponsored tokenized securities provided by Securitize, Figure, Superstate, etc.; and perpetual futures exchanges like Hyperliquid, Variational Omni, and QFEX.

However, this growth has brought about a new challenge: liquidity fragmentation. When the underlying stock is the same, liquidity becomes fragmented between different tokenization structures and providers.