Tokenized stocks, bigger than Bitcoin?
TheStreet · Tahj Shand

While Bitcoin continues to dominate headlines, many industry leaders are looking ahead to tokenized stocks.

Tokenization refers to the process of creating a digital representation of an asset on a blockchain.

Cathie Wood, CEO of ARK Invest, raised eyebrows when she predicted that Bitcoin could reach $1.5 million by 2030. At that price, Bitcoin’s fully diluted value (FDV) would be $31.5 trillion.

That sounds massive—however, the S&P 500 closed with a total market capitalization of $49.76 trillion on May 16, 2025.

Bitcoin is often called digital gold or digital cash, but tokenized stocks represent digital equity in companies—a very different value proposition.

Crypto purists argue that tokenized stocks are just a shinier version of the old system, while many traditional investors dismiss tokenization as a gimmick.

Why tokenize stocks?  Two big Reasons

1. Transparency

Most brokerage activity happens behind closed doors. Users hit “submit,” assuming their trades are executed—but they have no way to fully verify each transaction. Instead, they rely on reputable brokerages and trust that these firms will act honestly.

In contrast, crypto users say, "Don’t trust. Verify."

Tokenized stocks eliminate the need for trusted third parties. Trades are executed via smart contracts—code that runs on the blockchain. There is no middleman or hidden agenda, just logic.

The blockchain doesn’t care who profits. It simply follows commands based on clearly defined rules.

2. Liquidity

Tokenized stocks unlock global access. It’s not easy for international investors to access U.S. markets—regulations and capital requirements create a maze.

Tokenization allows anyone with an internet connection to buy tokenized shares. In addition, crypto users already hold trillions of dollars in liquid assets on blockchains such as Bitcoin and Ethereum, which could be used to purchase tokenized stocks.

Bitcoin proved the concept

Bitcoin’s success has proven that public blockchains work. The introduction of smart contracts on Ethereum taught crypto users to trust code over third parties.

Now, tokenization applies 16 years of blockchain experience to stocks, debt, commodities, or any real-world assets (RWAs).

Tokenized Securities are Here

RWA tokens aren't a futuristic concept—it’s already happening. Stablecoins like Tether’s $USDT, Circle’s $USDC, and PayPal’s $PYUSD are popular tokenized dollars.

The adoption of stablecoins leads many industry leaders to believe that tokenized stock markets are inevitable.