The Wave of Financial Tokenization: The Rise of a New Generation of Exchanges

At the intersection of cryptocurrency and AI, financial tokenization is becoming a highly regarded new trend. Several well-known companies are actively positioning themselves in this field, competing for market dominance, which could have profound effects on global capital flows, trading efficiency, and market volatility.

Strategic Layout of Key Participants

tokenization stock expansion plan of a certain exchange

The platform plans to support over 1000 types of American stocks in tokenized form by the end of the year, with main features including:

• 24/7 trading
• Partial Ownership
• Global Accessibility

Currently, this service is limited to the EU market, but the platform has announced the launch of a solution based on a certain Layer 2 blockchain. This initiative not only expands the Ethereum ecosystem but also marks a further alignment of traditional financial companies with blockchain technology.

However, this innovation is not without controversy. Some companies point out that these tokenized stocks are not equivalent to real stocks. What users are actually purchasing are tokenized contracts, not actual stocks. This highlights the importance of clear communication to users when companies promote tokenized financial products.

layout of another exchange

Unlike the platform mentioned above, another exchange has adopted a different strategy. It has launched tokenized stock products on a certain public chain in partnership with others, offering over 60 types of tokenized American stocks and ETFs, and has opened up to non-American users.

The platform's tokenized stocks have the following characteristics:

• Issued on a certain public chain
• Low investment threshold
• Asset Flexibility

It is worth noting that although the platform has its own Layer 2 network, it has chosen another ecosystem in the field of tokenization of stocks. The long-term effects of this strategic choice remain to be observed.

Other participants

In addition to the two main participants mentioned above, other companies are also actively entering the tokenization of stocks field:

• A certain exchange has reached a strategic cooperation with partners to gradually launch tokenized US stocks and ETF products on its spot platform.
• Another exchange has launched its first tokenized stock and opened it to EU users in partnership. The product enables trading 24/5 (Monday to Friday) and is fully on-chain.

Market Landscape and Future Outlook

potential participants

As a significant player in the cryptocurrency space, a large exchange has not yet officially entered the market, but its layout is worth paying attention to. It is reported that the exchange is in negotiations with regulatory authorities to seek compliant opportunities for tokenization of stocks.

The advantages of this exchange include:

• Powerful portfolio
• Advanced technological infrastructure

Although the exchange is usually not the first mover, it tends to launch the most complete products after thoroughly testing the market. This cautious strategy may allow it to succeed in the tokenization of stocks.

Compliance is key

Compared to the "mirror synthetic assets" launched by a certain agreement in 2020, the current tokenization of stocks model adopts a more compliant and regulated approach, avoiding the risk of repeating past mistakes. With the entry of traditional players and key participants in the crypto space, the scale of tokenized stocks is expected to far exceed that of the past.

The Transformation of On-chain Capital

Analysts predict that by the end of 2025, the market value of tokenized stocks in on-chain transactions could surpass $20 billion, with a conservative estimate reaching $50 billion. If a certain exchange fully launches its Layer 2 chain and puts all stock assets on-chain, the funds managed by its users alone could exceed $100 billion.

The financial infrastructure of this "super tokenized stock" will open a new phase of deep integration between traditional finance and blockchain. The future financial system will combine high efficiency, transparency, and global accessibility. The U.S. market is at the forefront of this trend, and tokenized stocks will become an important component of the global capital markets.

Compared to traditional methods, on-chain stocks have the ability to trade around the clock, with lower transaction costs and no longer relying on intermediary channels. Especially in overseas markets, obtaining US stocks typically requires paying a high premium, whereas on-chain assets can provide exposure to US stocks with almost "zero barriers," creating a broad and inclusive capital channel.

In the short term, on-chain stocks still cannot completely replace traditional stock markets and exist more as a complementary mechanism. In terms of market volatility, the on-chain market may be more stable due to deeper liquidity, but it may also experience severe fluctuations during unexpected events due to the lack of traditional circuit breaker mechanisms.

In traditional stock markets, weekends and circuit breakers provide a buffer for market sentiment. In contrast, the "always open" structure of the crypto market may in some cases trigger emotional sell-offs. However, this also attracts users who are dissatisfied with the delayed mechanisms of traditional markets. The real-time trading and uninterrupted nature of on-chain markets are gradually becoming their main appeal.

Although the proportion of tokenized stocks in the entire financial market is still minimal, with the deepening layout of major platforms, its proportion may significantly rise in the next two to three years. It may even prompt traditional securities exchanges to build their own on-chain platforms to provide product forms that better meet regulatory requirements.

All of this not only brings new investment opportunities but also comes with higher risks. The financial market is entering a multi-layered integration phase between on-chain and traditional mechanisms. Tokenized stocks are no longer a conceptual product, but an indispensable part of the real financial system.

Currently, there are projects launched, such as tokenized stock products on a certain platform. Although still in the early stages, they have already shown the potential for "on-chain price discovery." This mechanism may become an important way for traditional and on-chain markets to collaborate in the future. As tokenized stocks continue to grow, the transformation of on-chain capital markets has just begun.