The market for tokenized equities has exploded by almost 3,000% in a single year

Core Insights - Tokenized equities are approaching a market value of $1 billion, indicating a significant shift in real-world asset (RWA) tokenization from pilot projects to a rapidly developing segment of the crypto market infrastructure [1] - The market value of tokenized stocks reached approximately $963 million as of January 2026, reflecting a year-on-year increase of nearly 2,878% from $32 million the previous year [1][2] Market Dynamics - There is a growing demand for blockchain-based access to traditional financial assets, with firms exploring tokenization to enhance settlement efficiency, broaden market access, and create always-on financial products [2] - Tokenized equities have emerged as a prominent example of RWAs expanding into mainstream financial instruments beyond private credit and Treasury bills [2] Market Concentration - The market for tokenized equities is highly concentrated, with Ondo Global Markets holding over half of the total tokenized equity value, while xStocks and Securitize account for most of the remaining share [3] - The dominance of a few issuers highlights the early-stage nature of the sector and the critical role of regulated issuance frameworks [3] Technological Advancements - Improvements in institutional infrastructure have driven much of the momentum in the tokenized equities market, with Ethereum being the primary settlement layer, although other chains like Solana are gaining popularity for their cost-effective and faster transaction capabilities [4] Regulatory Environment - Regulatory developments in the U.S. are shaping the growth trajectory of the tokenized equities market, with December 2025 identified as a pivotal period due to new SEC guidance on broker-dealer custody and a DTCC no-action letter related to a tokenization pilot [5] - These regulatory changes indicate increased engagement from traditional market infrastructure providers [5] Future Outlook - The nearing $1 billion mark for tokenized equities positions the sector as a bellwether for the scalability of RWAs and suggests that institutional adoption may depend significantly on the alignment of regulation, custody, and market structure with blockchain innovations [6]