Flight to Quality: The Tokenized Stock Boom and Its Cost for Crypto
Stocks
The tokenized stock market has experienced explosive growth, expanding from $20 million to $1.4 billion in just 18 months as liquidity shifts from altcoins to digital securities. Platforms like Backed Finance, Ondo, and Hyperliquid are leading this trend, offering either spot-backed tokens or derivative contracts that provide price exposure to major equities like Tesla and Apple. Despite this rapid adoption, these instruments do not grant holders legal ownership, voting rights, or direct dividends, as most are issued without the underlying companies' approval. A recent high-profile attempt to offer SpaceX shares via crypto exchanges highlighted structural risks, as oversubscription and lack of direct access to underwriters led to widespread campaign cancellations. While Ethereum remains the dominant chain for broader RWA, Solana has captured over 80% of tokenized stock trading volume due to its low fees and high liquidity. Major institutions like Citi project that tokenized assets could reach $5.5 trillion by 2030, signaling a long-term shift in how retail investors access traditional financial markets. This evolution underscores a critical transition where blockchain platforms are increasingly functioning as alternative venues for global equity exposure.
Key points
- ▸Tokenized stock market cap surged from $20 million to $1.4 billion in 18 months.
- ▸Solana captured over 80% of global tokenized stock trading volume by late June 2026.
- ▸Hyperliquid's HIP-3 derivatives open interest grew over 100x to $1.43 billion in six months.
- ▸SpaceX IPO demand exceeded $100 billion, causing failures in crypto-native tokenized subscription models.
Background
Tokenized stocks are digital representations of traditional equities issued on distributed ledgers, typically maintained at a 1:1 ratio by a regulated custodian. They allow for 24/7 trading and fractional ownership, providing global retail investors with price exposure to assets like AAPL or TSLA without requiring a traditional brokerage account. These assets function as a subset of the broader RWA market, which aims to bridge the gap between legacy finance and decentralized infrastructure.
Relevance
9/10