Tokenized stock market grows 5.3x, regulations needed
6.7 Regulation The tokenized stock market grew 5.3 times to $3.558B in 2023, outpacing RWA growth and prompting calls for updated regulations worldwide.
The global tokenized stock market has seen significant expansion in 2023. As of October, the market size reached $3.558 billion, marking a 5.3-fold increase since the start of the year. This surge notably outpaces the overall real-world asset (RWA) market growth rate of 54%. Tokenized stocks are divided into four categories: digital twin models mirroring actual stock rights, on-chain securities registered with the U.S. SEC, wrapper models that provide returns linked to stock prices, and synthetic or derivative types. Currently, 82% of outstanding issuances are offshore U.S. products from platforms like Binance, Ondo, XStocks, and Robinhood, with wrapper types being the most common. While regulatory changes are emerging in the U.S., they remain in early stages. In Korea, a revised Electronic Securities Act will take effect in February next year, but overseas-issued tokenized stocks are not covered. As trading of domestic company stocks via overseas tokenized platforms rises, there are increasing calls for updated domestic regulations.
