Blockchain has clearly divided the history of the stock market into “before” and “after.” For over three years, the securities market has been actively setting its sights on tokenization. An increasing number of global financial hubs are now exploring and testing this technology. This is because blockchain does not merely translate traditional securities into a new digital format; it fundamentally “rewires” the very philosophy of the stock market.
The following opinion editorial (Op-Ed) was written by Volodymyr Nosov, Fintech entrepreneur, Founder and CEO of WhiteBIT.
Thanks to tokenization, stock trading can now happen 24/7 — no more waiting for Monday morning to execute a trade. High-value assets are also ceasing to be the exclusive privilege of institutional giants. Simultaneously, numerous barriers — including brokers, time constraints, high fees, and regional boundaries — are dissolving. Furthermore, an increasing number of progressive nations and regulators are cautiously giving the green light to this trend, while institutional investors watch its evolution with palpable interest.
Changing the Rules of the Game
The stock market, which may seem technologically advanced on the surface, still relies on outdated trading models. For instance, operations are restricted to weekdays and specific hours. Funds for purchased shares can remain “stuck” in banking processes for days, as settlements effectively pause during weekends and holidays. Given that today’s business operates at maximum speed, such capital delays are inefficient and, at times, critical.
A tokenized market significantly accelerates these mechanisms by ensuring near-instant trade execution. This unlocks massive volumes of capital that previously sat idle due to bureaucratic and technical lag. The rigid exchange schedule is being replaced by a 24/7 system.
These technological advantages are already being integrated into the strategies of the world’s most influential financial institutions. For example, the New York Stock Exchange (NYSE) is developing a platform for around-the-clock trading of ETFs and tokenized stocks, using stablecoins as a settlement tool. Meanwhile, the London Stock Exchange has successfully conducted its first transactions on its proprietary blockchain platform.
But speed isn’t the only factor. Tokenization provides a fundamentally new level of transparency and security. Because blockchain records every asset movement and transaction history in a digital ledger, substantially reducing the risks of manipulation, double-counting, and operational errors. As a result, market participants benefit from simplified auditing and a foundation of trust built not just on an intermediary’s reputation, but on mathematical algorithms.
However, I must emphasize that total transparency is a double-edged sword: large market players aren’t always keen on making their trading strategies fully public.
Another key advantage of tokenization is lowering the barrier to entry for investors. In traditional markets, many assets suffer from limited liquidity due to high costs. Tokenization introduces fractional ownership — the ability to purchase a portion of an asset rather than the whole. Consequently, high-priced stocks are becoming accessible to the retail segment, not just institutional players.
Of course, new opportunities bring new challenges: smart contract audits, oracle security, and the complexity of KYC/AML procedures. Nevertheless, the benefits of tokenization far outweigh these hurdles, and the market is rapidly adapting to the new reality.
The Regulatory Landscape
The supportive stance of regulators toward tokenization signals the emergence of a new stock market architecture in which traditional finance (TradFi) and blockchain are converging.
Since 2022, the European Union has operated a “regulatory sandbox” pilot regime, allowing countries to test blockchain-based trading infrastructure. Germany was among the first in the EU to legally recognize blockchain-based securities, and last year, France launched a tokenized exchange platform for small and medium-sized enterprises (SMEs). The French regulator approved a model in which settlements occur in real time and retail investors can buy tokenized shares directly, without opening traditional brokerage accounts.
The tokenization trend is also gaining momentum in the US, Singapore, and other advanced financial jurisdictions. That said, despite the optimism, several complex issues remain — specifically regarding asset custody and the legal status of custodial services.
Naturally, the retail sector is currently leading the charge in adopting this segment. For various reasons, institutional capital from large funds has not yet entered in full force. However, the transformation is well underway. Bolstered by regulatory support, major financial platforms are gradually integrating blockchain modules into their systems. Effectively, we have passed the point of no return.
By the Numbers
Statistics confirm this new financial reality. According to reports from Sentora and DL Research, the tokenized stock market is already approaching $1 billion. In the past year alone, this segment has grown by approximately 3,000%— up from $32 million at the start of 2025. This dynamic suggests the market is moving past its experimental phase.
McKinsey & Company analysts project that by 2030, the capitalization of tokenized assets could reach $2 trillion — excluding Bitcoin and stablecoins. Key growth drivers include the tokenization of mutual funds, bonds, exchange-traded notes (ETNs), loans, securitized instruments, and alternative funds.
Meanwhile, some experts lean toward even more bullish estimates, ranging from $9 trillion to $18 trillion.
Regardless of whether the market hits $2 trillion or $18 trillion, the trajectory is clear: Wall Street is becoming increasingly intertwined with blockchain. The industry is on the cusp of a profound paradigm shift, where tokenization is transforming from a niche solution into a potential global standard. Forward-thinking players who integrate blockchain solutions into their strategies today will gain a decisive advantage tomorrow.
