"Tokenized Stocks Set to Surpass $1T in Market Cap"

Tokenized stocks poised to exceed $1 trillion in market cap

Tokenized stocks are projected to surpass $1 trillion in market capitalization in the near future as adoption continues to gain momentum, according to insights shared by two industry executives at the TokenizeThis conference in New York.

The total addressable market for tokenized stocks, a subset of tokenized real-world assets (RWA), is challenging to estimate but is anticipated to be a significant trillion-dollar market, stated Arnab Naskar, CEO of STOKR, during a panel discussion on April 16.

By 2025, the demand for these instruments has seen a rapid rise from diverse institutions ranging from Web3 wallets to neobanks to traditional financial services firms, as highlighted by Anna Wroblewska, Chief Business Officer at Dinari.

"We've witnessed a significant surge in demand from a much broader spectrum of potential partners than expected... it has been quite intriguing," Wroblewska remarked.

Small but expanding market share

As of April 18, the cumulative market capitalization of tokenized stocks stands at around $350 million, as per data from RWA.xyz.

Despite contributing only a fraction to the overall RWA market valued at over $18 billion, there is potential for this to change as tokenized stocks begin to capture a larger slice of the US equities market, noted Wroblewska.

The US stock market boasts an aggregated value exceeding $50 trillion, as reported by Siblis Research. This underscores a substantial appetite for US public equities globally, with tokenization offering a quick and cost-effective avenue for investors to gain exposure.

Furthermore, there is a growing demand for tokenized US Treasury Bills due to similar reasons, with their total market cap currently approaching $6 billion based on RWA.xyz data.

Moreover, Coinbase is contemplating the possibility of offering tokenized shares of its stock on Base, the Ethereum layer-2 network.

Collectively, tokenized RWAs represent a $30 trillion market opportunity worldwide, as highlighted by Colin Butler, Global Head of Institutional Capital at Movement Labs, in an interview with Cointelegraph.

"Tokenization is set to mirror the market. If the user experience is enhanced in terms of efficiency and cost-effectiveness, people are likely to gravitate towards tokenized assets," Wroblewska emphasized.

Overall, the trajectory of tokenized stocks appears to be on a path towards significant growth, with the potential to revolutionize the traditional finance industry and enhance accessibility to global markets.