Disclaimer

The views expressed herein do not necessarily reflect those of the editorial team. ForkLog is not responsible for readers' investment decisions.

In the past, tokenized stocks were seen as a niche experiment at the intersection of cryptocurrencies and traditional finance (TradFi). However, the landscape has shifted significantly. We are now witnessing the emergence of a new financial infrastructure that bridges the gap between stock markets and digital assets.

For millions of cryptocurrency exchange users, investing in the shares of major global companies is becoming as straightforward as purchasing Bitcoin or Ethereum. In my opinion, this is merely the beginning of a broader transformation.

From Experimentation to a Full-fledged Market

The year 2026 marks a pivotal moment for tokenized assets. According to a report by DeFiLlama, the market capitalization of tokenized stocks has surged over 140% since the beginning of the year, rising from $814 million to nearly $2 billion. This growth rate is among the highest in the digital asset segments.

However, numbers alone tell only part of the story. More crucially, we are observing a shift in demand dynamics.

Previously, users were drawn to cryptocurrencies for the promise of high returns. Now, an increasing number of investors are looking to integrate traditional and digital assets within a single portfolio. Many no longer wish to choose between Bitcoin and shares of Nvidia or Apple; they desire access to all these assets through a unified platform.

That’s why at Bitget, we are developing the Universal Exchange (UEX) concept, where cryptocurrencies, stocks, commodities, and other financial instruments can be accessed from a single account.

What Determines Platform Success?

In nascent markets, users primarily focus on the number of available assets. As the market matures, the quality of trading becomes paramount.

Investors on traditional stock exchanges have long assessed exchanges based on liquidity, order book depth, and transaction costs. The tokenized asset segment is following this trend.

According to DeFiLlama, the median bid-ask spread on Bitget stood at 0.83 basis points, or less than one-hundredth of a percent. This is the lowest among major platforms trading tokenized stocks. Moreover, the platform exhibited the deepest order book at the best prices among those analyzed.

While these metrics may seem technical, they fundamentally influence the actual costs incurred by traders. A lower spread results in reduced losses when entering and exiting positions. High liquidity enables the execution of large trades with minimal price impact.

As the market continues to grow, the quality of execution will increasingly determine traders' platform preferences.

Liquidity as a New Currency of Trust

The primary challenge faced by early generations of tokenized assets was a lack of liquidity. Exchanges offered dozens or even hundreds of such stocks, but actual trading volumes remained low. Consequently, users encountered wide spreads and slippage.

This situation is evolving. At Bitget, we are witnessing a sustained increase in activity: from June 2 to July 19, trading volume for rTokens (Reality's RWA tokens) exceeded $1.16 billion.

Investor interest is particularly strong in technology firms, semiconductor manufacturers, artificial intelligence developers, and ETFs focused on innovative sectors.

This mirrors a global trend: tokenized stocks are increasingly utilized to gain access to rapidly expanding sectors of the economy without needing an account with a foreign broker.

The Next Step: Transparency

High liquidity must be underpinned by trust. Therefore, one of the key areas for market development is the transparency of the backing for tokenized assets.

Reality has expanded its collaboration with The Network Firm and has begun daily publication of independent Proof-of-Reserves reports for 500 tokenized stocks and ETFs.

Investors can verify daily that each issued rToken is fully backed by the underlying security.

In my view, such standards will become the norm across the industry.

What to Expect in the Next Three Years

I firmly believe we are at the onset of this market's evolution. Over the next three years, several fundamental changes are anticipated.

1. The number of tokenized assets will significantly increase.

Currently, the market is focused on the largest American companies. In the coming years, investors will gain access to thousands of assets, including stocks from European and Asian companies, government bonds, corporate debt, funds, indices, and commodities.

2. Liquidity will become the primary competitive advantage.

Platforms currently compete based on the number of listings. In a few years, the main selection criteria will be market depth, order execution speed, and trading costs. Users will gravitate toward platforms that facilitate transactions of virtually any volume.

3. The lines between TradFi and cryptocurrencies will blur.

We will no longer speak of two distinct financial worlds. An investor will have one account through which they can buy Bitcoin, Nvidia shares, S&P 500 ETFs, gold, and bonds. The distinction between a cryptocurrency exchange and a traditional broker will diminish.

The Future is Being Built Today

Tokenization is not merely a digital shell for traditional assets; it is transforming the way investors interact with global financial markets.

With stocks trading around the clock and accessible to anyone with a digital wallet, the market is becoming more open and efficient.

The next three years are likely to be a period where tokenized stocks transition from being viewed as innovations to becoming mainstream financial instruments.

Thus, it is crucial to invest not only in expanding the range of assets but also in liquidity, transparency, and execution quality. These factors will determine the leaders of the next generation of global financial markets.

Text: Gracie Chen, CEO of Bitget