Tokenized Stocks Near $1B — Trillion-Dollar Upside Hinges on Clear Regulation

In less than a year the tokenized stock market has gone from virtually nothing to nearly $1 billion — and industry observers say that’s just the opening act. Tokenized equities and ETFs — blockchain-based versions of traditional shares — are attracting growing interest from retail and institutional corners of crypto. Proponents argue they could deliver major advantages: faster settlement, lower costs and truly global access. Coinbase CEO remains bullish despite regulatory setbacks. On X (formerly Twitter) he called tokenized stocks “inevitable,” adding: “It’s inevitable – faster, cheaper, more global.” That optimism persists even as legislative turbulence — including hiccups around the CLARITY Act and a contested Senate crypto market-structure draft — has injected uncertainty into the sector’s near-term path. How big could tokenization get? Projections vary wildly but are consistently large. McKinsey estimates the market could reach $3.8 trillion in an accelerated-adoption scenario with clear, permissive regulation. Other forecasts span from a few trillion to tens of trillions by 2030. In short: the upside is enormous if lawmakers provide clear rules for issuers. Source: McKinsey Institutional interest appears tangible. A Bitwise survey of financial advisors found stablecoins and tokenization drew the most interest (30%), followed by “digital gold”/concerns about fiat debasement (22%) and crypto-linked AI investments (19%). “Crypto’s future has always depended on what financial advisors think of it,” said Bitwise CIO Matt Hougan — underscoring why advisor sentiment matters for broader adoption. Source: X/Bitwise But the industry is split over regulatory language. Coinbase publicly withdrew support for the Senate draft after it reportedly banned tokenized stocks and stablecoin rewards. Other voices, including Robinhood’s chief legal officer and former SEC commissioner Dan Gallagher, called concerns “overblown,” saying they’ll work with Congress to resolve remaining uncertainty. The outcome of those negotiations could determine whether the bill regains momentum and clears a path for a tokenization boom. Source: X/Dan Gallagher On-chain activity shows accelerating adoption. The tokenized stock market now sits at about $867 million and is closing in on $1 billion. Monthly transfer volume rose 11% to $2.3 billion, and the number of tokenized-stock holders climbed 22% to 159,000 — signs of growing user engagement. Source: RWA At the settlement-layer level, Solana led traction for much of last year, but BNB Chain has overtaken it and maintained the lead over the past two months — highlighting how competition between blockchains is shaping where tokenized assets are issued and traded. Outlook: Strong fundamentals meet regulatory uncertainty. The technology promises efficiency and broader access, institutional interest is rising, and on-chain metrics point to accelerating adoption. The missing piece remains clear regulatory frameworks — change that could turn a near-$1 billion market into a multi-trillion-dollar one over the coming decade. Disclaimer: AMBCrypto’s content is informational and not investment advice. Trading, buying or selling cryptocurrencies carries high risk; readers should do their own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news