Tokenized Stock Market Heats Up, Led by Ethereum
The tokenized stock market today is heating up, with Solana-based projects like Jupiter and PreStocksFi allowing retail traders to buy and sell pre-IPO stocks around the clock. Meanwhile, Ethereum remains the dominant blockchain for tokenizing stocks, with a 57% share of the market.
Ethereum-based platforms like AlpacaDB's Instant Tokenization Network, Backed (xStocks), and Ondo Finance are leading the way, enabling global investors to trade tokenized US stocks and ETFs on-chain. These platforms have a combined market share of 95%, with Backed and Ondo Global Markets focusing on popular U.S. tech stocks and ETFs.
The total market value of tokenized stocks, including EXOD, has reached $342 million, a 14x increase from earlier this year. However, the market is highly concentrated, with Ethereum-based platforms dominating. Solana-based initiatives like Splyce, Chintai, and Keel have made significant strides, managing assets valued over $656 million, but they still trail behind Ethereum's dominance in the ethereum price.
Ondo Global Markets aims to boost its market share by 70% with the launch of its tokenized stocks platform. However, the legal status, custody, and pricing of tokenized pre-IPO stocks remain uncertain, as most are synthetic and do not give actual ownership rights. Superstate Opening Bell is exploring native issuance with Galaxy Digital's GLXY stock to address this issue.
The tokenized stock market is growing rapidly, with Ethereum-based platforms currently leading the way. While Solana-based projects are making inroads, the market remains highly concentrated. As the market expands, so too will the need for clear legal frameworks and secure custody solutions for tokenized pre-IPO stocks.
