In the financial circle of 2025, 'U.S. stock tokenization' is definitely a hot topic. It has blown into the worlds of traditional finance and cryptocurrency like a breath of fresh air, bringing new experiences and challenges to both investors and financial institutions.
What exactly is U.S. stock tokenization?
In simple terms, U.S. stock tokenization uses blockchain technology to convert the real stocks of publicly listed American companies or the equity of some unlisted new economy companies into digital tokens on the chain. It's like turning a physical stock certificate into a string of codes that can circulate freely on the blockchain. These tokens correspond 1:1 to real stocks, meaning that holding one token is equivalent to owning one corresponding stock. Moreover, you can trade these tokens globally in blockchain networks using digital wallets and stablecoins (such as USDT, USDC), without being restricted by traditional financial centers or compliant brokerage systems.
Why has U.S. stock tokenization suddenly become popular?
Lowering Investment Barriers
Previously, investing in U.S. stocks was not an easy task. For many ordinary investors, it either felt cumbersome or they lacked sufficient funds. But now things are different; U.S. stock tokenization has significantly lowered the investment barrier. For example, Robinhood plans to launch tokenized products for private equity such as OpenAI and SpaceX, allowing investments in stocks of large companies like Nvidia and Microsoft with a minimum of just 1 euro, and supporting trading at the 0.01 share level. It's like before you could only buy a whole roasted duck, but now you can buy just the duck neck or duck wings separately, giving more people the opportunity to participate in U.S. stock investments.
Around-the-Clock Trading
Traditional stock market trading hours are strictly limited, generally only open during specific hours on working days. However, U.S. stock tokenization breaks this limitation, enabling 24/5 or even 24/7 trading. This means that whether you are busy with work during the day or free at night, you can buy and sell U.S. stock tokens at any time. For instance, on June 30, 2025, Bybit, Kraken, and Robinhood all launched U.S. stock tokenization services simultaneously, with Robinhood's service allowing for 24-hour trading five days a week and plans to eventually expand to 24/7. This around-the-clock trading model allows investors to seize market opportunities more flexibly.
Improving Trading Efficiency
In traditional stock trading, the settlement period is relatively long, generally T+2, meaning that settlement can only be completed on the second working day after the transaction. Moreover, the trading process involves multiple intermediaries, increasing counterparty risk. However, U.S. stock tokenization adopts an on-chain settlement method, greatly simplifying the settlement process, allowing for instant completion and reducing counterparty risk. For example, Robinhood's planned Robinhood Chain will further optimize clearing efficiency, making trading more efficient.
Expanding Investment Channels
For global investors, U.S. stock tokenization provides a new investment channel. Previously, many non-U.S. investors needed to go through local brokers to invest in U.S. stocks, but the fees were high, and settlement times were slow, causing friction. Now, through U.S. stock tokenization, they can trade directly on the blockchain, making it more convenient and efficient. Services like Kraken's xStocks have been launched in Europe, Latin America, Africa, and Asia, allowing investors in these regions to participate in U.S. stock investments more easily.
Which platforms are promoting U.S. stock tokenization?
Robinhood: Radical Innovator
Robinhood is an online brokerage that has been very aggressive in the field of U.S. stock tokenization. On June 30, 2025, it announced the launch of stock token trading services based on the Arbitrum network for EU users, supporting trading of over 200 U.S. stocks and ETFs, including popular stocks like Nvidia, Apple, and Microsoft. Additionally, it plans to introduce tokens linked to private company stocks, such as OpenAI and SpaceX. Robinhood's goal is to build a global digital brokerage that promotes the dynamic adaptation of securities laws under the new financial order through technological means. However, this radical innovation has also raised some issues, such as public opposition from related companies regarding the on-chain mapping of unlisted company equity, and challenges in establishing compliance firewalls on-chain to prevent money laundering and retrospective investor loss.
Coinbase: Compliance Bridge Builder
Coinbase is a well-known cryptocurrency trading platform that plans to launch tokenized stock trading services within a compliance framework. It has submitted a pilot application to the U.S. Securities and Exchange Commission (SEC), and if approved, it will be one of the first compliant platforms in the U.S. to launch tokenized U.S. stock services. Coinbase aims to build a 'bridge' between traditional capital markets and the crypto world, allowing global users (especially those outside the U.S.) to participate in U.S. stock investments conveniently using stablecoins like USDT and USDC without needing local brokers. It plans to treat U.S. stock tokens as compliant real-world assets (RWA), generating standardized tokens on-chain, each anchored to actual custodial U.S. stock assets.
Bybit and Kraken: Third-Party Issuers
Bybit and Kraken have adopted a model of third-party issuance + multi-exchange access. They have partnered with the Swiss compliance asset tokenization platform Backed Finance to launch the xStocks product provided by Backed Finance. These tokens are supported 1:1 by real stocks, held by regulated custodial institutions, and deployed on the Solana chain, allowing for 24/7 uninterrupted trading and on-chain settlement. However, due to compliance restrictions, these services are currently only available to non-U.S. users.
What challenges does U.S. stock tokenization face?
Regulatory Challenges
Currently, U.S. stock tokenization still faces unclear regulatory issues. The regulatory requirements differ greatly among various countries and regions, posing significant challenges for global expansion. For instance, U.S. regulators have not made their stance on U.S. stock tokenization clear, and many services can only launch in jurisdictions outside the U.S. Moreover, whether tokens are classified as securities remains a contentious issue. For example, Exodus's EXOD token does not include voting rights and only represents economic rights. This 'holding value without holding rights' design avoids SEC regulation but could be redefined under the EU's MiCA framework.
Technical Risks
Although blockchain technology has many advantages, it also comes with certain risks. For example, vulnerabilities in smart contracts and network attacks can lead to investor asset damage. In May 2025, a DeFi protocol experienced a price deviation of 15% on stock tokens due to delayed oracle data, resulting in user losses. Additionally, on-chain assets rely on user self-custody; if a wallet's private key is lost or stolen, the assets cannot be recovered. While platforms like Robinhood offer custodial services, this requires users to balance security and control.
Increased Market Volatility
U.S. stock tokenization enables 24/7 trading, but this may also lead to increased market volatility. The extended trading hours and increased number of participants increase the likelihood of the market being affected by various factors, which may lead to more frequent and severe price fluctuations. For example, a certain ETF token experienced an 8% price drop during the U.S. stock market's off-hours due to a large sell order, only returning to a reasonable level after the market opened the next day.
Lack of Voting Rights
Currently, most U.S. stock tokenization products only support dividends, while voting rights are still held by the platform agency. This means that investors' rights are not complete and they cannot truly participate in company decisions. For example, users holding tokenized stocks can receive stock dividends but cannot participate in shareholder meetings like ordinary shareholders or express opinions on major matters such as company development strategies.
Future Outlook
Despite the many challenges facing U.S. stock tokenization, its development prospects remain broad. Morgan Stanley predicts that by 2030, the global real-world asset market size could reach $16 trillion, with securities assets dominating. As regulatory frameworks improve and technology matures, U.S. stock tokenization is expected to account for 10% - 15% of U.S. stock trading volume within the next five years, becoming an important symbol of the digital finance era.
However, to achieve this goal, the platform also needs to address issues such as voting rights and cross-chain liquidity. Investors also need to carefully assess risks, fully understand the background and reputation of the trading platform, diversify investments, and closely monitor changes in regulatory policies. Only in this way can the tokenization of U.S. stocks walk more steadily and further on the road of financial innovation.
