TLDR
- Tokenized stocks market cap reached $370 million in July 2024, growing 220% from June
- Blockchain addresses holding tokenized stocks surged from 1,600 in June to over 90,000 in July
- If 1% of global equities get tokenized, the market could reach $1.3 trillion
- Over 60 tokenized stocks launched on major exchanges including Kraken and Bybit
- Growth pace mirrors early DeFi boom when total value locked rose from $1 billion to $100 billion
The tokenized stocks market experienced explosive growth in July 2024, reaching a total market capitalization of $370 million. This represents a 220% increase from June, according to Binance Research data shared with industry publications.
Tokenized stocks are digital representations of traditional company shares issued on blockchain networks. They allow investors to own fractional pieces of stocks and trade them 24/7 on decentralized platforms.
The largest portion of the market cap, $260 million, came from Exodus Movement (EXOD) shares issued through Securitize. When excluding this figure, the remaining tokenized stocks market reached $53.6 million, still showing the dramatic monthly growth rate.
Investor demand for these blockchain-based financial products has grown rapidly. The number of blockchain addresses holding tokenized stocks jumped from 1,600 in June to over 90,000 in July. This 56-fold increase demonstrates expanding retail and institutional interest.
The growth pattern resembles the early decentralized finance boom from 2020 to 2021. During that period, total value locked in DeFi protocols rose from $1 billion to $100 billion in under two years.
Market Potential Reaches Trillion-Dollar Territory
Binance Research projects that tokenized stocks could capture a $1.3 trillion market opportunity. This would happen if just 1% of the global equity market gets tokenized on blockchain networks.
The global equity market is valued at over $100 trillion. Even a small percentage moving to blockchain would create a massive new sector.
This potential market size would make tokenized stocks worth eight times more than the DeFi market at its peak. The projection highlights how traditional finance is beginning to merge with blockchain technology.
Over 60 tokenized stocks launched for trading on major exchanges during this growth period. Kraken and Bybit both added tokenized stock trading to their platforms.
Solana’s DeFi ecosystem gained access to tokenized stocks through Backed Finance’s xStocks product. These tokens represent popular blue-chip companies like Amazon, Nvidia, Apple, Tesla and Microsoft.
Trading Benefits Drive Adoption
Tokenized stocks offer several advantages over traditional stock trading. They provide 24/7 trading access, compared to limited market hours for regular stocks.
The tokens are freely transferable between wallets and exchanges. Some platforms like Kraken offer commission-free trading for certain tokenized stocks.
Mark Greenberg, global head of Kraken’s Consumer Business Unit, said tokenized equities must “feel like the internet.” He explained they should be always available, self-directed and globally accessible.
The goal extends beyond simply moving traditional products to blockchain. Industry leaders want to create new levels of accessibility for investors worldwide.
Current blockchain infrastructure is evolving to support more sophisticated financial products. As tokenized stocks grow, they drive demand for better DeFi tools and services.
The two sectors reinforce each other and could accelerate mainstream blockchain adoption. Traditional finance companies are watching this space closely for future opportunities.
Regulatory frameworks continue developing as tokenized stocks gain traction. Different jurisdictions are creating rules for these digital securities.
