Author: 137Labs
Recently, there have been several substantial developments in the tokenized stocks sector:
Kraken launches xStocks, an on-chain tokenized stock platform
Coinbase is seeking regulatory approval.
Solana submits a blockchain-based framework for tokenized securities.
Robinhood launches tokenized equity product in Europe
Meanwhile, global market data shows that the size of tokenized stocks is growing rapidly, providing important context for understanding this trend.
I. On-chain 72-hour transaction mechanism
1. Traditional US stock trading mechanism
The traditional U.S. stock market has the following core characteristics:
Fixed trading hours
Trading is primarily conducted during regular trading hours on weekdays (Eastern Time), with weaker liquidity before and after market hours, and liquidity concentrated during the main market hours.
T+1 settlement system
After a transaction is completed, the settlement of funds and securities is usually completed on the next trading day (historically, it was T+2).
Mature clearing system
Transactions and settlements are completed through licensed securities firms and clearing institutions, a mature system with high certainty of delivery.
Advantages: Stable system, clear laws, and mature risk control.
Limitations: Trading hours are restricted, and global investors face time zone friction.
2. On-chain extended transaction period mechanism
A significant characteristic of tokenized US stocks is the extended trading hours:
xStocks offers 24/7 trading.
Robinhood's European version offers 24/7 access.
Multiple on-chain solutions are attempting to achieve near 24/7 trading.
Representative participants include:
Backed Finance
Solana Policy Institute
Ondo Finance
Key differences:
On-chain tokens can be transferred in real time, but this is not equivalent to the legally binding and final settlement of the underlying stock.
In most structures:
The actual shares are still held by the securities firm or custodian institution.
On-chain transactions are reflected in the circulation of share certificates.
Final legal settlement relies on the traditional clearing system
therefore:
Real-time on-chain transfer ≠ Real-time final settlement
II. Classification of Platforms Supporting On-Chain Integration of US Stocks
The current market can be roughly divided into four categories:
Centralized Exchanges (CEXs)
Compliant tokenization issuers
Public chain + ecosystem framework players
Derivatives Protocol (Tokenization of Non-Real Stocks)
1. Centralized Exchanges (CEX)
(1) Kraken – xStocks
Launch date: June 2025
Partners: Backed Finance, Solana
Supported stocks: 200+ US stocks
Trading hours: 5 x 24 hours
Ecological cooperation includes:
Raydium
Jupiter
Kamino Finance
Chainlink
Alpaca
Features:
Supports both CEX and on-chain transactions
Can be used as collateral in loan agreements
Introducing a market maker system
The structure is relatively complete
(2) Coinbase
Seeking no action letter or exemption from the SEC
Plans to open tokenized shares to US users
The idea of issuing COIN on-chain was proposed in 2020.
If approved, it will become the first large-scale exchange-based tokenized stock platform targeting users in the United States.
(3) Robinhood (European version)
Based on Arbitrum
Support dividend distribution
5 x 24-hour access
Free transfer on the chain is not allowed
Its essence is a price tracking structure, rather than a fully freely tradable on-chain stock.
(4) Bybit
Participate in the xStocks ecosystem
Previously launched a US stock index trading platform based on MT5.
Primarily employs derivatives logic
2. Compliant tokenization issuers
(1) Dinari (US registered)
Established: 2021
Tokenized stocks to be launched in 2023
Partner brokers: Alpaca, Interactive Brokers
Supported networks: Ethereum, Arbitrum, Base
KYC is required
Trading only during US stock market trading hours
Does not support free circulation on the blockchain
scale:
Stock size in the millions of dollars
TVL is mainly concentrated in government bond products.
Features: Operates entirely within the SEC framework.
(2) Backed Finance (Swiss registered)
Established: 2021
Launched in early 2023
Release ERC-20 bSTOCK
Support free on-chain transactions
KYC is not mandatory for end users.
Public data:
The tokenized shares are valued at approximately $20 million.
Flow pool TVL approximately $8 million
Average LP yield is approximately 30%+
Support Chain:
Gnosis
Base
Avalanche
(3) SwarmX
European Registration
Similar to Backed
Smaller scale
Support on-chain transactions
(4) Exodus (NYSE: EXOD)
US-listed companies
Allows migration of its own stock to Algorand
On-chain transactions are not supported.
Not possessing full shareholder equity
It belongs to the category of "digital registration" tokenization.
3. Public blockchain + ecosystem framework players
(1) Solana – Project Open
Promoted through the Solana Policy Institute
Submit a framework for tokenized securities issuance
Issuers need to register
Investors need to complete KYC (Know Your Customer) procedures.
Allow on-chain transfer agent records
We are applying for an 18-month exemption to support on-chain transactions.
(2)Ondo – Global Markets
RWA, a major player in the Treasury bond market
Plans to launch tokenized US stocks
24/7 trading
Instant casting and destruction
Can be used as collateral
For non-US users
(3) Superstate
Related to the Solana framework
Focus on RWA compliance structure
Stock tokenization has not yet been widely implemented.
4. Derivatives Protocols (Tokenization of Non-Real Stocks)
These platforms do not buy real stocks, but instead provide price tracking products.
(1) Gains Network
Deployed on Arbitrum / Polygon
Similar to perpetual contracts
Quoting using Chainlink
No KYC required
Average daily trading volume < 2 million USD
(2) Helix (Injective)
Supports US stocks and foreign exchange
Daily trading volume < $10 million
No KYC required
(3) Synthetix / Mirror
Launched in 2020
Synthetic asset model
Trading volume has not yet reached a significant scale.
(4) Shift
Using the reference asset token structure
US stocks are held in custody by brokerage firms
No KYC required for users
No shareholder equity
5. Exploring ETF On-Chain Integration
Index-based assets are better suited for on-chain implementation, for example:
Invesco
Invesco QQQ Trust
Features:
Indexed exposure
Risk diversification
More suitable as collateral or LP subject matter
Currently, the on-chain size of ETFs is still small, but they are considered easier to standardize.
III. T+1 / T+2 Settlement Differences
Traditional US stocks
The current settlement is T+1.
Settlement and delivery are required after the transaction.
Historically, it was T+2
On-chain tokenization structure
Tokens can be transferred in real time.
The underlying stocks are still held in custody by securities firms.
Legal settlement relies on traditional clearing systems
This results in a "two-layer structure":
Fast on-chain circulation
The underlying assets are settled according to traditional rules.
Potential impacts:
Short-term price differences
Insufficient on-chain liquidity leads to increased slippage.
Redemption risk depends on the issuance structure
in conclusion
The current tokenized US stock market is still relatively small, accounting for a very small percentage of the overall US stock market, but the participants are becoming more diversified.
Its structural features include:
Trading hours significantly extended
Enhanced on-chain circulation capacity
Settlement pathways run parallel to traditional markets
Platform types are clearly differentiated
Tokenized US stocks are still in their early stages, but extended trading hours and on-chain composability are changing the way assets circulate, providing new technological pathways for cross-market trading structures.
Disclaimer:
This article is merely a compilation and analysis of relevant market mechanisms and publicly available information, and does not constitute any form of investment advice or invitation to invest. The market is risky; decisions should be made with caution.
