A multi-billion jump: The trend shaking up capital and crypto markets

For decades, the method of investing in stocks has remained virtually unchanged: you open an investment account at a bank or brokerage, deposit funds, and execute trades during market hours. Today, the crypto industry is offering an alternative path through tokenized stocks.

These are digital representations of financial assets on a blockchain. According to the latest data from RWA.xyz, the number of holders of tokenized stocks has more than doubled within a month, reaching approximately 1.31 million.

Simultaneously, the volume of monthly transfers surged by approximately 179%, reaching $23.13 billion. The number of active addresses also rose by 35%, hitting nearly 572,000. The total value of stocks distributed in this manner has reached approximately $2.38 billion.

Despite this rapid growth, the market remains quite small relative to the global stock market. However, its pace of development is attracting significant attention and raising questions about the future of financial asset trading.

The concept is somewhat reminiscent of how stablecoins like USDC and USDT represent dollars on a blockchain. In the case of tokenization, instead of a currency, one takes a financial asset, such as a stock, and issues a token designed to provide exposure to it.

Theoretically, this allows for transferring assets between wallets, integrating them into blockchain-based applications, and in some cases, trading outside of regular exchange hours.

However, it is important to understand that "tokenized stock" is a general term for products that can differ significantly:

1. In some cases, the token is backed by a real stock held by a financial institution.

2. In others, it is a product that provides exposure to the price movement only.

The rights associated with the product also vary, potentially including voting rights, dividends, or legal ownership of the underlying stock. Therefore, purchasing a token that tracks Apple stock is not necessarily identical to directly purchasing shares through a broker. The difference depends on the product's structure and the rights it grants the holder.

Data indicates that the field is still in its early stages compared to the traditional stock market, but the increase in holders, transfer volumes, and active addresses points to a significant expansion in the use of tokenized stocks.