Tokenised Stocks Expand 24/7 Equity Market, Bitget Reports

Tokenised stocks have seen their trading volume exceed $1 billion, predominantly in December, according to a report by Bitget. This increase demonstrates a growing interest in accessing traditional equities through blockchain technology beyond usual market hours. Investors are increasingly engaging with these assets in real-time, reacting to global economic and geopolitical developments, without waiting for standard U.S. market openings.

A notable trend is the geographic, rather than temporal, arbitrage. Tokenised stocks provide a pathway for non-U.S. investors to gain exposure to American equities without maintaining local brokerage accounts or incurring foreign exchange fees. Companies like Backed Finance have experienced significant growth in the market capitalization of their tokenised equity products, which appeals to investors in regions where direct access to U.S. markets is complex or restricted. This framework offers an alternative for the billions of investors outside the traditional U.S. brokerage system.

Despite the rapid increase in activity, regulatory bodies have clarified that tokenisation does not alter the legal classification of securities. The European Securities and Markets Authority (ESMA) maintains that tokenised shares are subject to MiFID II regulations, which govern transferable securities, rather than MiCA, which pertains to non-security crypto-assets. Similarly, the U.S. Securities and Exchange Commission (SEC) considers tokenised equities as securities that must comply with registration requirements or be issued under specific exemptions. In 2025, the SEC allowed the Depository Trust & Clearing Corporation a three-year no-action window to experiment with on-chain tokenisation for stocks, bonds, and Treasuries, integrating the technology into existing financial infrastructures.

Tokenisation is no longer a marginal activity; it is gaining interest from major financial institutions, which foresee a substantial market potential. Deutsche Bank Research projects that the market for tokenised real-world assets might reach between $1.5 trillion and $2 trillion by 2030, potentially expanding to $4 trillion by 2035. As these tokenised markets develop, traditional brokers face the possibility of significant changes to their core business models, operations, and roles.

The industry is witnessing a shift as trading behavior and liquidity formation move away from traditional, time-bound financial infrastructures to continuous access portals for traditional assets. The primary focus is transitioning from whether tokenised stocks will face regulation to whether global access to equities will continue to be restricted by traditional brokerage hours and geographic boundaries, even as markets evolve to operate continuously.

An exchange-traded fund (ETF) is typically a financial instrument that tracks an index, commodity, or other assets, reflecting their performance. In the context of tokenised stocks, the term ‘spot’ often refers to the current market price at which an asset is traded. Companies usually file for ETFs to offer investors seamless investment products that mirror the performance of an underlying asset without requiring direct ownership. Regulatory approval for these products generally involves scrutiny over several aspects, including custody arrangements, market integrity, information disclosures, and investor protection.

Regulators worldwide prioritize the safe integration of tokenisation within existing financial systems. They emphasize the importance of upholding security and transparency through custody measures, market integrity, and surveillance-sharing agreements. Investor protection and clear disclosures are also key elements of this regulatory oversight.

Institutional interest in crypto products has been driven by growing client demand for diverse investment options and pathways to enter the crypto space. Large banks and asset managers are exploring these products as a means to offer fee-generating services and new avenues for investment, responding to a broader shift in market dynamics.

Bitcoin, often recognized as the largest cryptocurrency by market capitalization, has paved the way for other digital assets. Solana, a blockchain network known for facilitating smart contracts, is leveraged for various applications, including tokenised stocks. These platforms enable continuous trading, allowing investors to engage with digital assets around the clock.

However, engaging in tokenised markets presents potential risks. These can include market volatility, liquidity challenges, and operational uncertainties. Regulatory ambiguity and potential tracking errors also pose concerns. Investors must navigate these risks, alongside considerations like transaction fees, which vary depending on the platform and product.

The competitive landscape for tokenised financial products is marked by multiple issuers filing similar offerings. The approval timelines can be uncertain, with issuers often revising their proposals. The process involves thorough review periods, and regulators may request public comments before making decisions on approvals or denials. Stakeholders closely monitor these developments for impacts on market access and operational dynamics.

As the market for tokenised stocks grows, stakeholders await further regulatory guidance and market data. The evolving landscape necessitates adaptation from traditional financial entities, as global access to equities becomes increasingly unrestricted. Decisions and updates from regulatory bodies will play a critical role in shaping the future trajectory of tokenised trading environments.