The market capitalization of the tokenized equities segment has reached $4.63 billion — exactly the level at which stablecoins stood in March 2020 before growing 64-fold. Investors outside the US gain round-the-clock access to American securities, but in most cases do not become shareholders: they hold only a claim against the company that issued the token.
Companies can find holders worldwide and raise capital more cheaply, while token issuers earn on issuance, redemption, and trading. The key risk is high concentration: the market is concentrated among three participants, and the stablecoin scenario does not guarantee similar growth at all.
Real shares in custody, tokens on the blockchain
According to a fresh Token Terminal study, 85.7% of the segment's capitalization replicates the stablecoin model. A third-party custodian holds the real shares, the issuer issues tokens against them at a 1-to-1 ratio and conducts client verification (KYC) upon issuance and redemption, while the tokens themselves change hands around the clock.
About 86.4% of the market is backed by US-listed shares and exchange-traded funds (ETFs). The largest positions among stocks are Circle ($384 million), SpaceX ($287 million), and Strategy ($273 million). Among funds, iShares 0-1Y Treasury ($315 million), which invests in short-term US government bonds, leads. Three issuers control 81.4% of the market: bStocks from Binance ($1.39 billion), Ondo ($1.32 billion), and xStocks ($1.06 billion).
Blockchains account for the overwhelming share of the market: 79% is concentrated in BNB Chain ($1.72 billion), Solana ($1.09 billion), and Ethereum ($844 million). In addition, $295 million worth of tokens are already deployed in decentralized finance (DeFi): $166 million sits on trading venues like Uniswap, and $78.2 million is in lending protocols, primarily Kamino. A holder can not only store the token but also earn yield on it or borrow against it.
Record growth rests on a temporary SEC measure
The capitalization of tokenized equities has already hit an all-time high, and growth has accelerated noticeably over the past year. It is precisely this dynamic that allows the current market to be compared with stablecoins circa 2020.
However, the legal basis for the boom is temporary: in September, the US Securities and Exchange Commission (SEC) allowed venues to trade tokenized US equities without registering as exchanges, but only for a period of up to five years. These are staff guidance rather than a full-fledged regulatory act, and future leadership of the regulator could revoke them with a single decision.
Cryptalist analysis: The tokenized equities market is demonstrating a classic early-adoption curve, structurally repeating the trajectory of stablecoins, yet its foundation currently rests on a temporary regulatory accommodation rather than a durable regulatory framework. The concentration of 81.4% among three issuers and 79% across three blockchains creates systemic risk: any tightening of SEC policy could trigger a sharp outflow of liquidity. The $295 million integration with DeFi is an important signal of maturity, but it is regulatory certainty, not technology, that will determine whether the potential for exponential growth is realized.