Crypto.com has launched tokenized derivatives for 1,500 U.S. stocks and ETFs, allowing around-the-clock trading without ownership rights.
Crypto.com has officially launched a new suite of tokenized derivatives that track the prices of 1,500 U.S. stocks and exchange-traded funds (ETFs), including tech giants such as Apple, Nvidia, and Tesla. This move marks a significant step for the exchange as it seeks to diversify its offerings and penetrate traditional financial markets.
Available to eligible users in the European Economic Area and select regions, these derivatives allow trading with minimum investments starting at just $1, providing around-the-clock trading options. The derivatives, issued by Foris Capital CY Limited, are designed to reflect price movements of the underlying stocks and ETFs without granting actual ownership or voting rights to the investors.
While investors can benefit from price adjustments akin to dividends, they do not hold legal rights to the actual shares. This product launch follows Crypto.com’s acquisition of Foris Capital, which secured a Markets in Financial Instruments Directive (MiFID) license, enabling the platform to offer regulated financial products across Europe.
Growth of Tokenized Stocks
The introduction of these derivatives coincides with a booming tokenized stock market, which has reportedly surged by 600% in the past year, reaching a value of approximately $2.49 billion, according to data from RWA.xyz. Analysts predict that the market for tokenized securities could grow to $5.5 trillion by 2030, with tokenized equities alone accounting for $2.6 trillion.
Other platforms such as Kraken, Bybit, and Robinhood have also begun offering similar products aimed at international investors. In the U.S., the Depository Trust & Clearing Corporation (DTCC) is testing infrastructure for tokenized securities, while major exchanges like Nasdaq and the New York Stock Exchange are exploring their own tokenization initiatives.
It is important to note that tokenized products vary significantly; while some derivatives provide synthetic exposure without shareholder rights, others may enable true ownership of shares on the blockchain. This evolving landscape is drawing increased scrutiny from regulators as tokenized securities inch closer to mainstream finance.
