Tokenized stocks gain traction abroad
RWA Signal Insight
StocksTokenized equity trading is experiencing rapid growth offshore, highlighted by Robinhood Chain’s volume surging from 526 million dollars in July to 11.31 billion dollars in September. While international markets see high activity in blockchain-based stock exposure, the U.S. market faces significant friction as major corporations resist specific tokenization models. OKXICE, a platform launched by OKX and the Intercontinental Exchange, has encountered formal objections from 16 companies, including Goldman Sachs, Microsoft, and Alphabet, regarding the listing of tokens mirroring their shares. These objections stem from concerns over voting rights, unclear governance, and the risks associated with 24/7 trading environments. Under a new SEC innovation exemption, venues must notify issuers and observe a 30-day waiting period before trading commences. Industry analysts suggest the current divergence reflects a fundamental tension between investor demand for onchain access and issuer caution regarding control. The future of U.S. tokenized equities depends on whether issuers perceive benefits like global distribution and automated dividend payments as outweighing these operational risks. Ultimately, the success of this asset class will be determined by how effectively platforms can align token rights with traditional shareholder expectations.
Key points
- Robinhood Chain tokenized stock volume grew from 526 million to 11.31 billion dollars quarterly.
- Sixteen major firms, including Microsoft and Goldman Sachs, formally objected to OKXICE token listings.
- SEC innovation exemptions require a 30-day notice period for issuers before tokenized trading begins.
- Non-crypto market volume on Hyperliquid's perpetuals exchange rose to 36.5 percent this quarter.
Background
Tokenization involves creating digital representations of real-world assets on a blockchain, allowing them to be traded with the efficiency of crypto-assets. In the context of equities, this process aims to enable 24/7 trading, fractional ownership, and automated settlement. These tokens can theoretically be used as collateral in decentralized finance protocols, potentially expanding liquidity for traditional securities.