Tokenized Stocks: The Next Stablecoin?

The tokenized stocks market has reached a pivotal inflection point. As of December 2025, the sector's market capitalization has surged to $1.2 billion, a figure that mirrors the explosive growth trajectory of stablecoins in 2020 and the DeFi boom of the same period according to reports. This rapid expansion is not a speculative bubble but a structural shift driven by institutional adoption, regulatory clarity, and the convergence of traditional finance (TradFi) and blockchain infrastructure. Tokenized equities are emerging as the next stablecoin-a foundational asset class that bridges the gap between legacy markets and decentralized finance, offering scalable yield, 24/7 liquidity, and compliance-first innovation.

The $1.2B Milestone: A New Financial Infrastructure

The tokenized stocks market has grown from $450 million in mid-2024 to $1.2 billion in late 2025, fueled by two major waves of institutional activity in September and December. Platforms like Backed Finance, Securitize, and Nasdaq have played a critical role in this growth. Nasdaq's recent filing with the U.S. Securities and Exchange Commission (SEC) to list tokenized shares signals a broader institutional commitment to onchain equities according to reports. These developments reflect a shift in how capital is settled and traded: tokenized stocks enable near-instant settlement, fractional ownership, and global accessibility, addressing long-standing inefficiencies in TradFi.

This growth mirrors the early days of stablecoins, which started as niche experiments but evolved into $150 billion in market value by 2022. Tokenized stocks are following a similar path, with institutional investors recognizing their potential to streamline trading, reduce counterparty risk, and unlock new yield opportunities.

Ethereum's Dominance: The Settlement Rail for Institutional Capital

Ethereum has emerged as the backbone of the tokenized stocks ecosystem. As of 2025, 50% of tokenized assets are linked to Ethereum, driven by its programmable smart contracts, proof-of-stake consensus, and institutional-grade staking yields of 3–4%. The approval of spot Ethereum ETFs in late 2024 further solidified its role as a trusted settlement layer for digital assets according to reports.

Institutional adoption of Ethereum-based tokenized stocks is accelerating. Backed Finance's xStocks suite, which tokenizes 60 public equities on Ethereum, and Securitize's compliant onchain trading platform are prime examples of how Ethereum is enabling a new financial infrastructure according to reports. These platforms leverage Ethereum's interoperability with DeFi protocols, allowing investors to stake tokenized stocks for yield or use them as collateral in decentralized lending markets.

Stellar's Compliance-First Edge: Scaling Institutional Trust

While Ethereum dominates the settlement layer, Stellar (XLM) is carving out a niche as the compliance-first blockchain for tokenized assets. In 2025, Stellar processed over $2.5 billion in tokenized transactions, including private debt, commodities, and equities. Its institutional-grade features-such as ISO 20022 compliance, KYC/AML verification, and asset clawback capabilities-align with global regulatory frameworks like the EU's Markets in Crypto-Assets (MiCA) and Singapore's Monetary Authority of Singapore (MAS) guidelines according to reports.

Stellar's low fees (under $0.00001 per transaction) and high throughput (5,000 transactions per second) make it ideal for tokenizing regulated assets according to reports. For example, Stellar's Account Control feature embeds compliance requirements directly on-chain, ensuring that tokenized stocks meet legal standards for institutional investors. This alignment with regulatory expectations is critical as tokenized equities transition from experimental products to mainstream financial instruments.

Evernorth (XRPN): A Case Study in Institutional Adoption

The tokenized stocks market's growth is further underscored by Evernorth's planned NASDAQ listing under the ticker "XRPN." Backed by Ripple and Armada Acquisition Corp II, Evernorth aims to raise $1 billion to create the world's largest public XRP treasury. This SPAC merger exemplifies how institutional investors are leveraging tokenized assets to gain exposure to digital currencies while adhering to regulatory safeguards.

Evernorth's model goes beyond passive XRP ownership. By deploying institutional lending, liquidity provisioning, and DeFi yield strategies, the company is transforming XRP into a scalable, regulated asset class. Its leadership, including former Ripple executives, and strategic partnerships with SBI, Pantera Capital, and Kraken, highlight the growing convergence between blockchain-native firms and traditional financial institutions. The anticipated Q1 2026 listing will provide a liquid, transparent vehicle for XRP exposure, further institutionalizing the tokenized assets market.

The Investment Thesis: Bridging TradFi and Web3

Tokenized equities are uniquely positioned to bridge the gap between traditional and digital finance. Unlike Bitcoin or Ethereum, which remain speculative assets, tokenized stocks offer real-world utility: they represent ownership in tangible companies while inheriting blockchain's advantages-faster settlement, fractional ownership, and programmable features according to reports.

For investors, the appeal is clear. Tokenized stocks provide access to a $1.2 billion market with exponential growth potential, driven by institutional demand for yield and liquidity. Ethereum's dominance ensures scalability, while Stellar's compliance-first approach addresses regulatory concerns. Evernorth's listing demonstrates how tokenized assets can be integrated into traditional markets, creating a flywheel effect that attracts more capital.

Conclusion: The Next Stablecoin

The tokenized stocks market is not just a niche experiment-it is the next stablecoin. Just as stablecoins became the backbone of DeFi by providing a stable, liquid asset, tokenized equities are becoming the backbone of a new financial infrastructure. With Ethereum's settlement rails, Stellar's compliance tools, and Evernorth's institutional-grade listings, the sector is poised for exponential growth. For investors, this represents a rare opportunity to capitalize on the convergence of TradFi and Web3, with scalable yields, regulatory clarity, and a market cap that is only beginning to take off.