Tokenized Stocks Market Surges to $3.6 Billion with 632% Growth

The market for tokenized stocks has surged, reaching a total market cap of $2.6 billion according to CoinMarketCap, while Token Terminal estimates it at $3.6 billion, reflecting a 632% increase over the past year. Major exchanges like Binance, Robinhood, and Coinbase now offer these tokenized stocks, which allow investors to buy fractional shares of companies like Apple and Nvidia with stablecoins, trade them 24/7, and use them as collateral for loans.

Binance's bStocks, launched on June 11, have already hit $806 million in value. These tokens can be withdrawn to self-custody wallets on BNB Chain, Solana, Base, and Robinhood Chain. Aave's V4 Equities Hub, which went live on Base on September 25, accepts seven Coinbase stock tokens as collateral for USDC loans, with loan-to-value ratios ranging from 65% to 79%. Other platforms like Morpho and Kamino also run similar lending markets.

Tokenized stocks offer unique advantages over traditional brokerage accounts, such as the ability to trade outside market hours and borrow against holdings without selling. However, access is limited, with most issuers excluding the US, UK, and Canada. The SEC's Innovation Exemption, announced on September 17, could open a path for US retail customers in the future.

Several platforms, including Binance, Robinhood, Coinbase, Kraken, and Bybit, offer tokenized stocks to retail investors. These tokens can be stored in self-custody wallets, providing users with control over their assets. Platforms like MetaMask, Guardis, Phantom, and Trust Wallet also support these tokens, allowing users to trade and manage them directly from their wallets.