Tokenized Stocks Surpass $1B as Ondo, xStocks Dominate Sector

The tokenized real-world asset (RWA) market expanded to $24.9 billion in February 2026, a 289% increase from $6.4 billion the previous year. Six asset classes now individually exceed $1 billion in tokenized value, with U.S. Treasuries leading the growth at $10.8 billion. Platforms like BlackRock's BUIDL and Ondo Finance have contributed to this expansion.

Tokenized stocks have emerged as a significant category, growing from near-zero to $786 million since mid-2025. This growth is largely independent of Bitcoin's price movements, indicating a broader appeal for tokenized equities. Platforms such as Ondo Finance, Backed Finance, Dinari, and Robinhood are offering onchain access to major equities like NVDA, TSLA, and GOOGL.

Meanwhile, the market capitalization of equity tokens has nearly tripled since early 2025. This growth is driven by infrastructure providers like the New York Stock Exchange and Nasdaq, which are integrating tokenized equity and settlement systems into traditional markets. These developments aim to modernize stock trading by enabling 24/7 access, reducing intermediary dependence, and expanding opportunities for private market exposure.

Why Did This Happen?

Blockchain-based tokenization is enabling a shift toward 24/7 trading and instant settlement, offering investors more flexibility and efficiency. For example, platforms like Republic Crypto now allow access to private market exposure for as little as $500, lowering investment barriers. This trend is supported by regulatory clarity and technological advancements in the blockchain sector.

The BitGo IPO demonstrated the potential of tokenization, with tokenized stock being tradable on Solana. This showcases the global reach and accessibility of tokenized assets. As a result, more institutional and retail investors are exploring tokenized equities for their portfolios.

How Markets Responded

xStocks, a standard for tokenized equities, is now accessible through Talos, expanding its availability to eligible institutional clients. This integration enables Talos-connected exchanges, liquidity providers, and platforms to support xStocks, which are 1:1 backed by real-world equities and ETFs.

Kraken and Nasdaq have partnered to build a gateway connecting tokenized equities from regulated markets to decentralized finance (DeFi) ecosystems. This collaboration aims to facilitate the use of xStocks as collateral for trading, derivatives, and financing within DeFi. The gateway leverages Nasdaq's regulatory expertise and Kraken's infrastructure to create a more global and efficient financial system.

Kraken's xStocks platform has also launched xChange, an on-chain trading engine that connects liquidity for over 70 tokenized equities across Ethereum and Solana. This initiative aims to unify liquidity in the RWA space, reducing fragmentation and enabling seamless trading. The platform supports atomic settlement and aligns on-chain prices with traditional markets.

What Are Analysts Watching Next?

The integration of xStocks into DeFi ecosystems is a key focus for analysts, as it could expand the use cases for tokenized equities. xStocks have already shown significant transaction volume, with over $25 billion in total trading volume. Analysts are watching how liquidity and price alignment evolve in these new markets.

Regulatory clarity remains a key factor for the tokenized equity market. While platforms like Nasdaq and Kraken are addressing compliance issues, there is still a need for broader regulatory frameworks to support cross-border trading and investor protection. This is especially important as tokenized assets gain traction in both institutional and retail markets.

Investor behavior is also under scrutiny, particularly how tokenized equities will compete with traditional stocks. The ability to trade 24/5 and the potential for higher liquidity in on-chain markets may attract a new generation of investors. However, challenges such as standardizing token rights and ensuring market transparency remain key areas of focus.