Brian Armstrong Predicts Tokenized Stocks Will Be Huge With Many Opportunities

Brian Armstrong, co-founder of Coinbase, recently stated that 'tokenized stocks will be huge' with many opportunities ahead. His remarks align with the growing interest in tokenized real-world assets, which reached a total value of $19.72 billion as of January 9. The trend is supported by institutional players entering the space, including JPMorgan and BlackRock, which are leveraging blockchain for financial instruments.

Recent developments include a partnership between the ADI Foundation, Finstreet, and BlockBooster to accelerate the development of regulated tokenized products. The collaboration will focus on stablecoins, institutional-grade assets, and ecosystem development. This initiative underscores the broader movement toward creating compliant infrastructure for digital finance.

Tokenized U.S. Treasuries have grown significantly, rising from $3.95 billion in January 2025 to $8.86 billion by January 2026. This 125% increase reflects growing demand for programmable cash, where smart contracts automate interest payments and enable 24/7 trading. Institutions are also exploring tokenized commodities and private credit, with gold and institutional funds leading the way.

Why the Move Happened

The rise of tokenized stocks and assets is driven by the desire for greater efficiency and accessibility. Tokenization allows for fractional ownership and continuous trading, bypassing traditional market hours. This creates liquidity for illiquid assets and reduces transactional friction. Institutions are adopting blockchain to streamline settlement and custody processes.

Regulatory clarity is also a factor. The SEC's December 2025 no-action letter for tokenization pilots has encouraged broader experimentation. As a result, tokenized assets are increasingly treated as legitimate financial instruments, attracting both institutional and retail investors.

How Markets Responded

Solana has emerged as a key player in the tokenized stocks market. As of January 12, Solana xStocks account for over 57% of the $1 billion in total assets under management for tokenized stocks. Tesla, Circle, and Nvidia are among the most actively traded tokenized stocks on the platform. Bitget reported $1 billion in cumulative trading volume for its tokenized stocks platform in December alone.

Exchange integration is also expanding. Ondo Finance and Backed have partnered with major platforms to bring tokenized assets to broader audiences. These developments are signaling a shift in how investors access and trade equities, commodities, and other assets.

What Analysts Are Watching

Analysts are closely monitoring the growth of tokenized RWAs and the role of stablecoins in supporting liquidity. The market is expected to reach $30 billion to $57 billion in distributed RWAs by 2027, depending on regulatory and infrastructure developments.

The performance of tokenized stocks on Solana and other blockchains is another key focus. The recent drop in NVIDIA's tokenized stock (NVDAX) by 0.74% highlights the volatility and liquidity challenges still present in the market. Traders are watching for signs of stabilization, particularly around earnings reports and broader market trends.

Regulatory developments in the U.K. and the U.S. will also shape the trajectory of tokenized finance. The FCA's planned crypto licensing gateway in September 2026 and U.S. stablecoin interest rates could influence capital flows and market adoption.