Tokenized stocks surge 220% in July as DeFi-style growth takes hold

Tokenized stocks saw a dramatic 220% increase in market capitalization in July, according to a report from Binance Research. This growth, excluding the $260 million attributed to Exodus Movement (EXOD) shares issued by Securitize, pushed the market cap of tokenized equities to $53.6 million by month-end [1]. The overall tokenized stock market cap reached $370 million, signaling a surge in investor interest in blockchain-based financial assets [2].

The trend draws comparisons to the early days of the decentralized finance (DeFi) boom, where total value locked (TVL) grew from $1 billion to $100 billion within two years, from 2020 to 2021. While still modest compared to the global equity market (valued at over $100 trillion), the rapid growth indicates tokenized equities may be approaching a pivotal moment in the broader evolution of hybrid finance [3].

Blockchain address activity further underlines the rising demand. The number of blockchain addresses holding tokenized stocks jumped to over 90,000 in July, up from just 1,600 in June [4]. This surge suggests that a growing number of investors are engaging with tokenized assets and experimenting with blockchain-based trading platforms.

Tokenized stocks are being listed on major exchanges such as Kraken and Bybit, as well as Solana’s DeFi ecosystem via Backed Finance’s xStocks. These products feature 24/7 trading, no commissions, and freely transferable assets, offering a stark contrast to traditional equities. The xStocks platform, for instance, supports popular blue-chip stocks like Amazon, Nvidia, Apple, Tesla, and Microsoft [5]. Mark Greenberg, head of Kraken’s Consumer Business Unit, emphasized that tokenized equities should not merely replicate traditional Wall Street systems on the blockchain. Instead, they must offer a more accessible, self-directed, and globally available experience, akin to the internet [6].

The potential scale of the tokenized equities market is substantial. Binance Research estimates that if just 1% of the global equity market were tokenized, the sector could reach a $1.3 trillion market cap—nearly eight times the size of the DeFi market at its peak [7]. This growth could also drive demand for more advanced DeFi infrastructure, creating a mutually reinforcing cycle that accelerates mainstream blockchain adoption [8].

As the market evolves, the role of tokenized stocks in shaping the future of finance remains a key focus. Their potential to enhance liquidity, reduce barriers to entry, and redefine traditional trading mechanisms could position them as a foundational element of the next phase of financial innovation [9].

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[1] Title: Tokenized stocks rise 220% in July, reminiscent of ‘early DeFi boom’ (https://cointelegraph.com/news/tokenized-stocks-rise-220-of-early-defi-boom?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)