Dubai-based crypto exchange Bybit has expanded the financial utility of blockchain-based equities by enabling six tokenized stocks, including Nvidia and Tesla, to serve as collateral for margin trading and lending products for eligible users.
Perpetual futures for tokenized stocks and commodities on Hyperliquid and Binance nearly matched Bitcoin's trading volume, reaching $61.7 billion last week. This growth, particularly in equities and commodities, signals a shift in crypto markets and draws attention from traditional finance leaders.
Alpaca, a California brokerage, custodies over $1.5 billion in shares backing tokenized equities, dominating a market promoted as decentralized. However, the upcoming launch of DTCC's Tokenization Service in October threatens to disrupt this concentration by offering tokenized stocks with full shareholder rights, potentially undermining Alpaca's position.
Payward, Kraken's parent company, has partnered with global fintech GTN to launch its blockchain-based xStocks outside the U.S. for the first time. The expansion begins with Hong Kong-listed equities, with plans to include U.K., European, and South Korean stocks, aiming to address capital market fragmentation.
Arcus, a decentralized exchange backed by Robinhood Crypto, has launched tokenized stocks and perpetual futures on Robinhood Chain, offering over 95 stock tokens and derivatives. The platform uses a self-custodial model, but its stock tokens are unavailable in the US, Canada, and the UK due to ongoing regulatory questions.
Crypto exchange Backpack now offers 24/7 trading for tokenized US equities like SpaceX and Micron, allowing international investors direct ownership and instant settlement in fiat or stablecoins. This move aligns with a broader trend of traditional finance embracing tokenized assets.
Robinhood Chain's new mainnet has seen significant retail activity, primarily driven by the memecoin CASHCAT, which reached a $150 million market cap. The chain's open architecture allowed CASHCAT to gain traction on external DEXs, bypassing Robinhood's app-listing process.
Crypto exchange Kraken now allows eligible users outside the US to use tokenized stocks and ETFs as collateral for futures and margin trading, expanding the utility of real-world assets on the blockchain.
Robinhood launched its own Ethereum layer-2 blockchain, tokenized stocks, and decentralized lending products, expanding its global crypto infrastructure. This comes as its prediction market revenue, particularly from event contracts, shows potential to surpass crypto transaction revenue.
24X National Exchange has filed a rule change with the SEC to allow trading of tokenized stocks during a Depository Trust Company (DTC) pilot. The proposal aims to integrate tokenization into the existing national market system, preserving key infrastructure like DTC, member eligibility, and shareholder rights, rather than creating a workaround.
Venus Protocol launched bStocks markets on BNB Chain, enabling tokenized stocks like Tesla, Nvidia, and SpaceX to be used as collateral. The initial phase focuses on risk assessment with borrowing paused, testing equity-linked tokens in DeFi before regulatory frameworks settle.
SpaceX's IPO highlighted the ambiguity in crypto exchanges' equity-linked instruments. Products ranged from actual shares to tracker certificates and perpetual futures, each with distinct risks and ownership claims.
Crypto exchanges are shifting focus to tokenized stocks, offering exposure to equities like Nvidia and Apple, after new token listings proved detrimental to retail investors. This pivot aims to attract new users and capital, potentially channeling trillions into global equity markets via crypto infrastructure.
Binance has launched US equities trading for eligible users, offering commission-free trading on over 7,000 stocks and ETFs. The exchange plans to introduce tokenized stocks, called bStocks, in the coming weeks, pending regulatory approval, as part of its expansion into a multi-asset platform.
The SEC is preparing an 'innovation exemption' for tokenized stocks, potentially allowing crypto platforms to list digital versions of public securities without company consent. This move could significantly impact the growth of the tokenized stock market, raising questions about investor understanding of legal ownership versus price tracking.
Bitget Wallet now offers access to over 130 tokenized stocks and ETFs via xStocks infrastructure, expanding its RWA offerings to 300+ products. The service is unavailable in the US and UK.
The SEC is leaning towards allowing third-party platforms to tokenize stocks, a major reversal. Iran launched a Bitcoin-based maritime insurance platform to bypass sanctions. Strategy purchased $2B in Bitcoin, but the price dipped amid ETF outflows.
The SEC is expected to release an innovation exemption for tokenized stocks this week, allowing firms to test trading on novel venues like AMMs and public blockchains under defined parameters. This move could determine if crypto-native models compete with incumbents for US investors.
