Tokenized equities have moved from a niche crypto experiment to one of the fastest-growing corners of digital finance. The sector has now crossed the $1 billion mark in onchain value, according to multiple market trackers, with Ondo and xStocks emerging as the dominant platforms behind that expansion. The milestone matters because it shows growing demand for blockchain-based access to traditional shares and ETFs, even as questions remain around regulation, liquidity, and investor protections.
A breakout moment for tokenized equities
The phrase “Tokenized stocks surpass $1B as Ondo, xStocks dominate sector” captures a market shift that has accelerated sharply since mid-2025. RWA.xyz, which tracks tokenized real-world assets, listed tokenized public equities as a major growth segment in early 2026, while market commentary across the industry has pointed to a steep rise from roughly $32 million in January 2025 to about $963 million by January 2026. More recent reports in late February said the market had moved beyond $1 billion, with monthly trading volume nearing $2.2 billion.
That pace of growth stands out even in the broader real-world asset market. Tokenized Treasuries still represent a far larger pool of value, but tokenized stocks are expanding faster from a smaller base. Analysts have linked that rise to a simple proposition: investors want blockchain-native access to familiar assets such as Apple, Tesla, Nvidia, Amazon, and major ETFs, without leaving digital asset platforms.
The market remains concentrated. Data and industry reports consistently show Ondo Global Markets and xStocks controlling the majority of tokenized equity value and activity, with smaller shares held by providers such as Securitize. That concentration has helped the sector scale quickly, but it also means the market’s next phase may depend heavily on how these two ecosystems expand and manage risk.
How Ondo built an early lead
Ondo’s rise in tokenized stocks has been unusually fast. On September 3, 2025, Ondo Finance and the Ondo Foundation announced Ondo Global Markets, launching more than 100 tokenized U.S. stocks and ETFs on Ethereum for non-U.S. investors, with plans to add hundreds more. The company positioned the product as a bridge between traditional market exposure and blockchain settlement.
By early 2026, Ondo had become one of the largest tokenized stock issuers by value. Reports published in February said Ondo had issued roughly $605 million in tokenized stocks, making it the single biggest issuer by issuance value at that point. Separate market commentary also noted that Ondo’s products on Ethereum and BNB Chain together accounted for a substantial share of the market.
Ondo’s strategy has centered on breadth and distribution. The initial launch included support from wallets, exchanges, infrastructure providers, and DeFi protocols, giving the company a wide route to market from the start. It later expanded beyond Ethereum, including a push into Solana with more than 200 tokenized stocks, intensifying competition with xStocks in one of the most active onchain trading ecosystems.
For users, the appeal is straightforward:
- Exposure to U.S. stocks and ETFs in token form
- Onchain transfers and wallet-based custody
- Integration with crypto-native apps and protocols
- Broader access outside standard brokerage workflows
Those features do not eliminate the need for compliance or custody safeguards, but they help explain why tokenized equities have gained traction so quickly.
xStocks dominates trading activity
If Ondo has led by issuance value, xStocks has built a strong case as the leading tokenized equity network by trading activity, distribution, and user reach. xStocks, backed by Kraken and issued with Backed’s infrastructure, launched tokenized equities across crypto venues in 2025 and has continued to expand into 2026. Kraken describes xStocks as tokenized stocks and ETFs backed 1:1 by the underlying equity and supported by secure custody and audited reserves.
In February 2026, xStocks said it had surpassed $25 billion in total transaction volume. The company also said xStocks held 8 of the top 11 tokenized equity positions by unique holders and accounted for 68% of the top 25 tokenized stocks by unique holders as of February 17. The Block, citing Dune data, reported that xStocks on Solana represented about 46.9% of tokenized stock market share, ahead of Ondo’s Ethereum and BNB Chain offerings on a combined basis.
According to Val Gui, general manager for xStocks, the growth reflects demand for markets that are “open” and built for internet-native finance. That statement comes from company communications, but the broader trend is visible in third-party market data as well: xStocks has become deeply embedded across exchanges, wallets, and DeFi applications.
A key part of xStocks’ momentum is interoperability. The product has expanded across Solana, Ethereum, and TON, while regulated venues have also started to engage. In February 2026, 360X, a regulated secondary trading venue backed by Deutsche Börse Group, announced that xStocks would be available on its platform, a sign that tokenized equities are beginning to move beyond purely crypto-native channels.
Why the $1 billion milestone matters
The fact that tokenized stocks surpass $1B as Ondo, xStocks dominate sector is significant for several reasons. First, it suggests that tokenization is no longer limited to stablecoins and Treasury products. Public equities are becoming a serious use case, especially for investors seeking faster settlement, broader access, and compatibility with decentralized finance.
Second, the milestone shows that infrastructure has improved. In 2025, tokenized equities were still a fragmented category with limited liquidity and uncertain distribution. By early 2026, the market had clearer leaders, deeper integrations, and more visible demand. Solana and Ethereum have emerged as major settlement layers for these products, while exchanges and custodians are building the rails needed to support them.
Third, the growth may influence how traditional financial institutions think about blockchain-based securities. Nasdaq submitted a proposed rule change in September 2025 to trade and settle tokenized securities while maintaining national market system oversight, according to industry research. That does not guarantee rapid regulatory change, but it signals that established market operators are paying attention.
Risks, regulation, and market structure
The sector’s rapid growth does not remove its core risks. Tokenized stocks are still subject to legal, operational, and market-structure constraints. Access is often restricted by jurisdiction, and many products are not available to U.S. retail investors in the same way they are marketed abroad. Ondo’s September 2025 launch, for example, specifically targeted non-U.S. investors.
There are also questions around liquidity quality. Onchain volume can grow quickly, but secondary-market depth, redemption mechanics, and price alignment with underlying shares remain critical. A tokenized stock is only as useful as the infrastructure supporting issuance, custody, transfer, and redemption. That is one reason providers emphasize 1:1 backing, licensed custodians, and bankruptcy-remote structures.
Another issue is concentration. Research notes that the market is heavily dominated by a small number of issuers, especially Ondo and Backed/xStocks. According to Sentora Research, the top three providers controlled more than 90% of total onchain equity value in early 2026. Concentration can help standardize the market, but it also creates counterparty and platform dependency.
What comes next for tokenized stocks
The next phase of growth will likely depend on three factors: regulation, distribution, and utility. If more regulated venues, custodians, and exchanges support tokenized equities, the market could broaden beyond crypto-native users. If DeFi protocols continue accepting tokenized stocks as collateral, utility could expand further. And if regulators provide clearer rules, institutional participation may increase.
For now, the market is still early but no longer small. Tokenized stocks surpassing $1 billion marks a symbolic and practical threshold. Ondo has led much of the issuance growth, while xStocks has established itself as a major force in trading activity and network reach. Together, they are shaping the structure of a market that could become a larger part of digital finance over the next several years.
Conclusion
Tokenized equities have entered a new stage of development. The sector’s move past $1 billion in onchain value shows that investor demand for blockchain-based access to public markets is real, not theoretical. Ondo and xStocks now sit at the center of that expansion, each leading in different ways through issuance, distribution, and trading activity. The opportunity is substantial, but so are the challenges around regulation, custody, and market concentration. For the US financial industry, the trend is worth watching closely because it points to a future in which traditional securities and blockchain infrastructure increasingly converge.
Frequently Asked Questions
What are tokenized stocks?
Tokenized stocks are blockchain-based tokens designed to track or represent exposure to publicly traded shares or ETFs. Providers typically say these products are backed 1:1 by the underlying asset or structured to mirror it through regulated custody arrangements.
How large is the tokenized stock market now?
Industry reports in late February 2026 said the tokenized stock market had surpassed $1 billion in value, after rising from roughly $32 million in January 2025 to about $963 million by January 2026.
Who are the biggest players in tokenized equities?
Ondo and xStocks are the dominant names in the sector. Ondo has led by issuance value in several reports, while xStocks has led strongly in transaction volume, holder breadth, and market presence across trading venues.
Are tokenized stocks available to US retail investors?
Availability depends on the platform, product structure, and jurisdiction. Some major launches, including Ondo Global Markets in September 2025, were explicitly aimed at non-U.S. investors, so access for U.S. retail users is not universal.
Why are investors interested in tokenized stocks?
The main attractions are faster settlement, wallet-based ownership, integration with crypto platforms, and the ability to move traditional market exposure into onchain environments. Supporters also see potential for 24/7 transfers and DeFi use cases.
What are the main risks?
The biggest risks include regulatory uncertainty, platform concentration, custody and redemption mechanics, and the possibility that onchain liquidity may not always match the depth of traditional equity markets.
