Tokenized Stocks Surge Past 15% of RWA Market Cap Amid Regulatory Boost

Tokenized stocks have become increasingly popular over the past year, rising from less than 2% of the total RWA market cap in July 2025 to over 15% by July 2026. According to data from rwa.xyz, tokenized equities grew from approximately $2 million in distributed value in June 2025 to around $486 million by the end of Q1 2026, then ballooned to between $2 billion and $2.5 billion by mid-July.

The growth can be attributed to regulatory developments, with Nasdaq securing rule approvals in March 2026 that gave institutional players more comfort around tokenized equity products. The Depository Trust & Clearing Corporation also scheduled limited production trades in July 2026 as part of a broader rollout plan.

Several companies have launched their own tokenized stock products, including Ondo, Kraken's xStocks, and Binance's bStocks. Individual tokens now track companies like Circle, Tesla, and NVIDIA, as well as broader instruments such as the S&P 500 ETF.

Despite the growth, the tokenized stock market has a structural issue: secondary liquidity is thin and concentrated. Trading volume clusters around a handful of well-known names, with order books getting sparse further down the list. Market makers are now focusing on deepening liquidity and building cross-chain bridges to let tokens trade across multiple chains simultaneously.