The market for tokenized stocks is gaining momentum as major cryptocurrency exchanges expand their offerings, pushing the value of blockchain-based equities to approximately $1.5 billion and highlighting growing investor demand for around-the-clock access to traditional financial assets, according to a new market commentary from Martin Gaspar, Senior Crypto Market Strategist at FalconX.
Gaspar attributes the expansion to a combination of factors, including growing on-chain utility, increasing demand for around-the-clock trading and broader access to traditional financial assets through blockchain infrastructure.
“Traders are beginning to demand 24/7 trading of traditional asset classes,” he wrote, noting that tokenized stocks allow investors to gain economic exposure to equities while remaining on-chain.
Despite the sector’s rapid growth, issuance remains highly concentrated. FalconX estimates that Ondo Finance and xStocks together account for nearly $1.3 billion of the market’s total value. Ondo has approximately $900 million worth of tokenized stocks outstanding, while xStocks represents roughly $400 million.
Both platforms issue fully collateralized tokenized equities backed by the underlying securities held with regulated custodians, although the tokens provide economic exposure rather than shareholder voting rights, according to Gaspar.
He said that centralized crypto exchanges are emerging as the primary gateway for tokenized equities. Kraken was among the first major exchanges to introduce tokenized stocks in 2025, followed by Bybit, OKX and, more recently, Binance. Coinbase has also announced plans to launch similar products. FalconX argues these exchanges are becoming critical distribution channels that connect traditional financial markets with blockchain ecosystems.
Despite rapid issuance growth, on-chain activity remains relatively limited. FalconX found that around 62% of tokenized stock holders simply hold their assets, while only about 8% actively trade them on decentralized exchanges. Trading activity is concentrated primarily in xStocks issued on Solana, whereas Ondo’s products tend to see more activity through centralized venues and its own trading infrastructure.
Liquidity on decentralized exchanges also remains relatively thin, with only a handful of DeFi protocols currently accepting tokenized equities as collateral. However, Gaspar believes this is likely to change as new applications emerge.
“While tokenized stock value is growing rapidly, in part due to broader platform support and integrations, the DEX presence of tokenized equities remains nascent,” he wrote.
Looking ahead, Gaspar expects the on-chain ecosystem surrounding tokenized equities to continue developing as adoption accelerates.
“As these instruments continue to grow, their on-chain presence stands to expand as further use cases spring up for these instruments,” he concluded.
