Main Points:
- Tokenized stocks projected to surpass $1 trillion in market capitalization within the next few years.
- Real‑world asset (RWA) tokenization is driven by institutional demand, high‑net‑worth individuals, and retail investors seeking low‑cost access.
- Ethereum and Layer‑2 networks—particularly ZKsync Era and Base—dominate RWA issuance, with over $8 billion in total on‑chain value.
- Leading players include STOKR (Arnab Naskar), Dinariv, Coinbase, and major DeFi issuers like Backed.fi.
- The RWA space now spans tokenized stocks, U.S. Treasuries, ETFs, and other asset classes, reflecting a diverse growth trajectory.
- Regulatory clarity, custodial frameworks, and infrastructure scalability remain key challenges to mainstream adoption.
Market Growth and Trillion‑Dollar Projections
Industry executives at New York’s TokenizeThis conference unanimously agreed that tokenized stocks are on track to become a $1 trillion market within the coming years. Arnab Naskar, CEO of STOKR, noted during the April 16 panel that while precise forecasts are difficult, “the total addressable market for tokenized stocks has the potential to grow into the multiple‑trillion‑dollar range”. Likewise, Fenelon L. at Cointribune reported that several leaders foresee tokenized stock capitalization exceeding $1 trillion as institutional adoption accelerates.
This bullish outlook is underscored by broader projections for tokenized real‑world assets (RWAs). Polygon’s global head of institutional capital, Colin Butler, estimated the RWA tokenization opportunity at up to $30 trillion globally, driven by demand from high‑net‑worth individuals reallocating portfolios toward alternative assets. In short, tokenized stocks represent just the beginning of a potential multi‑trillion‑dollar shift in how traditional assets are issued and traded on‑chain.
Current Market Landscape and Size
Despite its rapid growth trajectory, tokenized stocks remain a modest slice of the overall RWA market. According to RWA.xyz data as of April 2025, Ethereum‑based RWAs account for $5.99 billion (56.2 % market share), while ZKsync Era holds $2.20 billion (20.7 %). Stellar, Aptos, and other chains collectively comprise the remainder, amounting to over $10 billion in total RWA value. Specifically, tokenized stocks on RWA.xyz register approximately $347 million in on‑chain value, representing only around 2 % of the $18.5 billion on‑chain RWA market.
However, trading volumes and active address growth signal a nascent yet accelerating market. Monthly transfer volume for tokenized stocks reached $30 million with 273 active addresses—a significant increase from the previous quarter. The current tokenized stock market, though small in absolute terms, exhibits strong quarter‑over‑quarter growth, indicating that liquidity and user engagement are improving rapidly.
Institutional Demand and Drivers
Institutional interest is a primary catalyst for the tokenized stock market’s expansion. Anna Vrobrevska, Chief Business Officer at Dinariv, reported that since early 2025, inquiries from traditional financial services—from Web3 wallets to neo‑banks—have “exploded” as institutions seek faster, lower‑cost access to U.S. equities. This institutional momentum is complemented by high‑net‑worth individuals looking to diversify into alternative asset classes previously hindered by geographic and regulatory barriers.
Moreover, tokenization significantly reduces entry costs and settlement times compared to traditional markets. On‑chain settlement can occur in seconds or minutes, versus the two business days required for conventional equity trades through central securities depositories. This efficiency is particularly attractive for global investors seeking direct U.S. market exposure without intermediaries, bolstering demand for tokenized stocks.
Notable Initiatives and Key Players
Several high‑profile initiatives underscore the tokenized stock movement:
- Coinbase on Base: Coinbase is exploring tokenizing its own COIN shares on Base, Ethereum’s Layer‑2 network, pending regulatory clarity. Jesse Pollak of Base noted that these plans could bring U.S. equity tokenization directly to millions of Base users in the U.S.
- Backed.fi’s bCOIN: Backed.fi recently launched the 1:1 tokenized Coinbase stock token ($bCOIN) on Base, providing 24/7 DEX trading and DeFi interoperability. Each $bCOIN token represents a legal claim on the equivalent COIN share under EU prospectus rules.
- STOKR and Dinariv: As early RWA tokenization infrastructure providers, STOKR (Arnab Naskar) and Dinariv have enabled institutional issuances, partnering with custodians and legal frameworks to ensure on‑chain assets comply with securities laws.
These projects exemplify the ecosystem’s maturation—from custody and compliance integration to user‑friendly trading interfaces—laying the groundwork for broader market adoption.
Expanding RWA Segments: Beyond Stocks
While stocks grab headlines, other RWA segments are rapidly scaling:
- Tokenized U.S. Treasuries: According to Reuters, Abu Dhabi‑based Realize launched a tokenized U.S. Treasury fund converting ETF holdings into blockchain tokens, targeting a $200 million fund size. The broader tokenized Treasury market is valued at $2.4 billion and growing.
- BlackRock’s BUIDL Fund: BlackRock’s first tokenized money market fund (BUIDL) has surpassed Franklin Templeton’s OnChain U.S. Government Money Fund in market cap, now representing 30 % of the $1.3 billion tokenized Treasury segment.
- Real Estate and Private Credit: Polygon’s Colin Butler predicts private credit and real estate tokenization will drive the next wave of RWA growth, unlocking liquidity for assets once deemed illiquid by traditional finance.
These developments illustrate that tokenization extends well beyond equities, encompassing government debt, ETFs, real estate, and beyond—diversifying on‑chain asset classes and use cases.
Challenges and Considerations
Despite robust growth, the tokenized RWA space faces several hurdles:
- Regulatory Uncertainty: Securities tokenization requires clear legal frameworks. Coinbase’s Base initiative is on hold pending regulatory guidance from U.S. authorities, highlighting the need for regulatory certainty.
- Custody and Compliance: Ensuring tokenized assets comply with KYC/AML and custodial requirements remains complex. Platforms must integrate on‑chain issuance with regulated custodians, adding operational overhead.
- Scalability and Infrastructure: Ethereum’s dominance (56 % of RWA value) suggests potential congestion and high gas fees. Layer‑2 networks like ZKsync Era ($2.2 billion, 20.7 %) and Base (emerging) are alleviating some pressure but require further growth to handle institutional volumes.
- Market Liquidity: While tokenized stock trading volume is growing, secondary market liquidity lags traditional exchanges. Improved market‑making and cross‑chain interoperability will be essential to sustain growth.
Addressing these challenges will be critical for tokenized RWAs to achieve mainstream adoption and realize their full $30 trillion potential.
Tokenized stocks represent the vanguard of a rapidly evolving RWA ecosystem poised to exceed $1 trillion in market capitalization in the coming years. Backed by institutional demand, high‑net‑worth investors, and DeFi infrastructure growth, tokenized equities are just one facet of a broader tokenization wave encompassing government debt, ETFs, real estate, and private credit. As projects by Coinbase, Backed.fi, STOKR, and BlackRock demonstrate, the tokenization infrastructure is maturing, yet regulatory clarity, custodial compliance, and scalability remain critical guardrails. Overcoming these challenges could unlock a new era of transparent, efficient, and global asset markets—transforming how value is stored, traded, and accessed on‑chain.
