Token Terminal reports an 886% annual increase in the value of outstanding tokenized stocks. Ondo Finance, Binance bStocks and xStocks account for approximately 80% of the measured market. Tr
Tokenized stocks have grown into a $4.4 billion market, according to Token Terminal, with three issuers controlling nearly 80% of the outstanding value.
The expansion has brought traditional equity exposure onto blockchain networks, but it has not eliminated the intermediaries involved in owning, backing and redeeming those instruments.
That distinction matters for investors. A token tracking a publicly listed company may trade around the clock without granting the same rights as an ordinary share or offering the same liquidity when the underlying exchange is closed.
Token Terminal’s figures imply a market worth approximately $446 million a year earlier.
Tokenized stock market cap reaches $4.4B, up 886% over the past year
Ondo ($1.3B), Binance bStocks ($1.2B) & xStocks ($1.0B) together account for roughly 80% of the market
Three issuers now have $1B+ in tokenized stocks onchain https://t.co/N6H8xWLzT9
— Token Terminal
(@tokenterminal) October 21, 2026
The increase is substantial, but the chart does not separate new issuance from appreciation in the underlying securities.
Nor does it establish how many investors hold these products. One large institutional position and thousands of smaller accounts can produce the same market capitalization.
A separate CoinGecko-based dataset compiled by Castle Labs placed tokenized stocks at approximately $2.47 billion on October 18. Its lower total illustrates why comparisons require consistent asset coverage, issuer classification and valuation methods. The two datasets should not be treated as directly interchangeable.
Binance Research’s October 20 report provides a different perspective.
According to the exchange’s research division, bStocks reached $1 billion in assets under management 125 days after launch, compared with 265 days for Ondo.
Since late August, reported net flows have broadly matched or exceeded growth in assets under management. The five largest holdings, which once represented approximately 97% of the platform’s assets, now account for less than half.
That suggests expansion beyond a handful of heavily traded securities.
Trading activity provides another indication of how the products are being used. Binance Research reports that weekly turnover averaged approximately 1.65 times bStocks’ assets under management over the preceding two months.
It also found that 56% of trading occurred outside regular U.S. stock-market hours, including 7% during weekends.
These are Binance’s own measurements, rather than independently audited market-wide statistics. Still, they indicate that at least one major platform is generating substantial secondary-market activity rather than merely accumulating tokenized assets.
The legal distinction between holding a share and holding a token linked to that share is central to the investment decision.
The SEC’s January 2026 statement on tokenized securities distinguishes securities tokenized by their original issuers from third-party arrangements.
The latter can involve custodial claims or separate financial instruments that track a security’s performance without transferring ordinary shareholder rights.
MARKET STRUCTUREInvestor rights & trading access Not All Tokenized Stocks Are Equal A comparison of Ondo Stocks and xStocks based on issuer disclosures. CATEGORY Ondo Ondo Stocks xStocks Backed certificates 01 / LEGAL RIGHTS Product type Economic exposure Tracker certificate Voting rights Not included Not included Backing Securities and cash Segregated securities 02 / MARKET ACCESS Redemption Eligible holders Eligible holders Primary market24/5 generally
Selected assets 24/7 24/5 Secondary trading 24/7* 24/7* THE INVESTOR DISTINCTION Both products provide economic exposure without ordinary shareholder voting rights. Continuous secondary trading does not necessarily mean continuous access to primary-market redemption. *Where supported; access and liquidity vary by platform and jurisdiction. Sources: Ondo · xStocksxStocks describes its instruments as bearer debt securities issued by a Jersey-based entity.
Each certificate is backed by a corresponding underlying security held in segregated custody accounts. An independent security agent has contractual powers concerning collateral if the issuer defaults.
Ondo describes a structure supported by underlying securities, cash in transit, independent backing verification and a security interest held for token holders.
Neither arrangement should be confused with ordinary direct share registration.
A further limitation concerns redemption. Ondo explicitly states that holding a token does not automatically qualify its owner to redeem it directly. Eligibility and onboarding requirements still apply.
A blockchain token can change hands while the underlying stock exchange is closed. That does not guarantee that investors can simultaneously exchange the token for its backing asset.
For xStocks, primary issuance and redemption generally operate five days a week, while secondary trading can continue throughout the weekend.
Ondo now offers continuous minting and redemption for six selected assets, including its Nvidia and Tesla-linked products, although interruptions and eligibility restrictions remain possible.
The distinction is consequential.
If unexpected company news arrives on Saturday, token prices may react before the underlying stock reopens. During that interval, liquidity depends on available buyers, sellers and market makers rather than unrestricted access to the conventional equity market.
A price premium or discount can persist when arbitrage is difficult, expensive or unavailable.
This also matters when tokenized equities are pledged as collateral in decentralized finance. A temporary market dislocation can affect collateral valuations and trigger liquidation mechanisms even before the underlying stock resumes ordinary trading.
The risk depends on the protocol’s price oracle, collateral requirements and liquidation rules, not merely on the token issuer’s backing arrangements.
The reported $4.4 billion milestone establishes rapid growth in tokenized equity exposure. It does not establish equivalent growth in unique investors, executable liquidity or direct ownership of public-company shares.
Those distinctions are becoming more relevant as traditional securities firms enter the sector.
The SEC’s September 2026 discussion of a proposed tokenization innovation exemption specifically contemplated trading arrangements that preserve shareholder rights, including voting and dividends. That approach differs from products designed primarily to track the economic performance of an underlying stock.
For investors, the decisive questions are whether a token provides enforceable rights, whether redemption is accessible, and how closely its trading price follows the underlying security when conventional markets are closed.
Tokenized stocks have demonstrated that equity exposure can move onto blockchain infrastructure at scale. The unresolved challenge is whether that infrastructure can deliver the liquidity and investor protections associated with the securities it represents.
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