Tokenized stocks skyrocketed 220% in July, targets $1.3 trillion growth

Tokenized stocks are experiencing an explosive surge, rising 220% in July alone—an acceleration drawing comparisons to the euphoric early days of DeFi.

As investor appetite for blockchain-native financial products intensifies, the sector is now staring down a potential $1.3 trillion market opportunity, according to a bombshell report from Binance Research.

Tokenized stocks, digital representations of real-world equities traded on-chain, are now becoming one of the most compelling use cases within the Real World Asset (RWA) tokenization movement.

The latest data shows these stocks reached a total market capitalization of $370 million by July’s end, with a staggering $260 million attributed to Exodus Movement (EXOD) shares issued via Securitize.

Excluding the Exodus issuance, tokenized stocks still soared to $53.6 million—an eye-watering 220% increase month-over-month, and an unmistakable echo of the early DeFi boom when Total Value Locked (TVL) surged from $1 billion to $100 billion between 2020 and 2021.

From deFi dreams to stock tokenization: A familiar frenzy

“The trajectory of tokenized stocks is strikingly similar to the DeFi explosion just a few years ago,” noted Binance Research.

“Though still small relative to the $100 trillion global equity market, the pace and scale of growth suggest we may be nearing a breakthrough moment.”

The focus on tokenized stocks comes at a time when traditional finance (TradFi) is slowly embracing blockchain innovations.

As tokenization reduces friction, eliminates intermediaries, and introduces 24/7 trading, investors are beginning to see the clear advantages of moving equities on-chain.

Tokenized stocks could capture 1% of globally equities—worth $1.3 trillion

If just 1% of global equities are tokenized, the market could balloon to a $1.3 trillion valuation—a figure that would dwarf DeFi’s all-time high market size, according to the report.

This would not only transform how stocks are traded but also create new channels for global capital to flow more freely and inclusively.

“Tokenized financial products won’t just replicate Wall Street—they will evolve past it,” said Mark Greenberg, Global Head of Consumer Business at Kraken, in a recent statement to Cointelegraph. “Tokenized stocks must feel like the internet: always on, borderless, and intuitive.”

Kraken lead the charge with zero-commission tokenized stocks

One of the standout benefits of tokenized equities is the elimination of trading fees on platforms like Kraken.

Combined with instant global accessibility, freely transferable ownership, and round-the-clock trading, tokenized stocks offer major advantages over legacy systems.

Kraken’s approach exemplifies the shift from replication to innovation. Greenberg stressed that merely mimicking traditional stock markets on-chain “misses the point entirely.”

Binance Research highlighted the feedback loop between tokenized stocks and DeFi infrastructure, predicting that as one thrives, the other will follow.

“As tokenized financial instruments mature, they will demand more sophisticated DeFi protocols to support them,” the report said.

“In turn, DeFi adoption will rise, ushering in a mainstream blockchain finance ecosystem that blends the best of both worlds.”

A tipping point for real world assets tokenization

The rise of tokenized stocks is not just a niche trend—it’s a key driver of the broader Real World Asset (RWA) tokenization movement, which is rapidly bringing tangible assets like real estate, bonds, and now equities onto the blockchain.

This transition is redefining accessibility and democratizing investment opportunities. Tokenization allows fractional ownership, global participation, and programmable compliance—all embedded into the asset itself.

The 220% spike in tokenized stocks may not be an isolated rally, but the opening move in a much larger shift in financial infrastructure.

With industry leaders like Binance and Kraken sounding bullish, and investor demand rapidly climbing, the path toward a $1.3 trillion tokenized equity market looks increasingly plausible.

As traditional and decentralized finance converge, one thing is clear—tokenized stocks are no longer a futuristic concept. They are here, they are growing fast, and they might just redefine the future of capital markets.