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Tokenized Stocks: Understanding Its Features & Recent Developments
Beginner
2025-09-25 | 10m
The convergence of traditional finance (TradFi) and decentralized finance (DeFi) is accelerating, marked by the rapid emergence of
tokenized stocks
. These are digital tokens on a blockchain that represent ownership in a traditional company, such as Apple or Tesla, or even in companies pioneering this space itself. The core promise is profound: leveraging blockchain technology to enable
24/7 trading, near-instant settlement, fractional ownership, and seamless integration with DeFi protocols
. This article explores the latest developments, key players, technological underpinnings, and future trajectory of tokenized stocks, arguing that they are poised to fundamentally reshape the landscape of global capital markets.
Recent Moves
The third quarter of 2025 has been a pivotal period for tokenized stocks, highlighted by groundbreaking initiatives from publicly traded companies themselves. The most significant announcement came from
Forward Industries (NASDAQ: FORD), which revealed its intention to become an "on-chain-first" company by tokenizing its equity on the Solana blockchain. This is not a minor experiment; it involves a
$1.65 billion private investment led by major institutions like Galaxy Digital, Jump Crypto, and Multicoin Capital, which is being used to build a substantial Solana-based treasury. Through a partnership with
Superstate's Opening Bell platform—a regulated issuance venue launched in May 2025—Forward's shareholders will be able to convert their common stock into tokenized FORD shares.
This move is transformative for several reasons. First, it positions Forward as one of the first public companies to issue tokenized equity directly on-chain. Second, the company is not merely creating a digital representation of its stock; it is actively working with major Solana DeFi protocols, including Drift, Kamino, and Jupiter Lend to enable these tokenized shares to be used as collateral within decentralized lending and borrowing systems. This integration represents a tangible step towards merging traditional equity with the innovative world of DeFi. Furthermore, Forward's decision to take an equity stake in Superstate underscores a long-term commitment to developing the infrastructure for on-chain capital markets. Alongside corporate initiatives, crypto exchanges are expanding access to tokenized traditional assets by launching tokenised crypto trading zones, offering users the ability to trade tokenized versions of stocks and ETFs from companies like
Apple (AAPLON) and Tesla (TSLAON) using USDT. This model, which emphasizes fragmented trading and 24/7 market access, lowers the barrier for global investors to participate in U.S. markets without the hurdles of cross-border account openings.
Infrastructure for Tokenized Stock Ecosystem
The infrastructure supporting the tokenized stock ecosystem is maturing rapidly, with several key platforms emerging as critical enablers.
Superstate: Founded by Robert Leshner, also the founder of DeFi protocol Compound, Superstate is carving out a niche as a bridge between TradFi and DeFi with a focus on compliance. Its
Opening Bell platform is designed as a regulated on-chain issuance platform that allows companies to tokenize public equity. By providing a compliant framework, Superstate addresses a primary concern for institutional participants—regulatory adherence. The platform ensures that tokenized assets are fully backed by underlying securities held by custodial brokers, ensuring asset safety and transparency.
Ondo Finance: While Superstate focuses on public company issuance, Ondo Finance has established itself as a giant in the broader Real World Asset (RWA) tokenization space. With a Total Value Locked (TVL) of
$1.659 billion as of September 2025, it ranks as one of the largest RWA platforms globally, behind only BlackRock's BUIDL and Ethena's USDtb. Ondo's strength lies in its compliance foundation, having secured several key U.S. licenses. Its collaboration with exchanges demonstrates how its infrastructure can power secondary markets for tokenized assets, offering features like dividend reinvestment and on-chain transferability.
The choice of blockchain is also critical.
Solana has emerged as the preferred network for these high-value experiments, primarily due to its
high throughput, low transaction costs, and growing institutional confidence. The network's capacity to process billions of transactions and support billions in daily DEX volume makes it technically suitable for capital markets activity . Furthermore, a growing cohort of 17 companies now holds a combined 17.11 million SOL (valued at over $4 billion), signaling strong institutional belief in Solana's long-term viability as a treasury asset and settlement layer.
Why It Matters?
The drive towards tokenizing stocks is fueled by compelling advantages that address limitations inherent in traditional finance.
Enhanced Liquidity and Market Access: Traditional stock markets operate within strict hours and time zones. Tokenized stocks can be traded
24 hours a day, 7 days a week, unlocking global liquidity and allowing investors to react to news in real-time. Furthermore, features like
fragmented trading allow investors to purchase fractions of high-priced stocks, significantly lowering the investment threshold and democratizing access to premium equities.
Operational Efficiency and Transparency: Blockchain technology enables
near-instant
settlementof trades, a dramatic improvement over the traditional T+2 (trade date plus two days) settlement cycle. This reduces counterparty risk and frees up capital. Moreover, the immutable and transparent nature of blockchain ledgers provides a clear audit trail for ownership and transactions, enhancing market integrity.
Unlocking New Utility in DeFi: Perhaps the most innovative aspect is the programmable functionality of tokenized stocks. As Forward Industries is pioneering, these assets can be integrated into DeFi ecosystems. Tokenized shares can be used as
collateral for loans on platforms like Jupiter Lend, allowing shareholders to access liquidity without having to sell their underlying equity. This creates entirely new capital efficiency opportunities that are impossible in traditional brokerage accounts.
Globalization of Ownership: Crypto exchanges offering tokenized stocks often require less stringent KYC (Know Your Customer) processes than traditional international brokerages. This significantly lowers the barrier for millions of global users to gain exposure to U.S. equities, fostering a truly global shareholder base for companies.
Navigating Challenges: Regulation, Volatility, and Integration Hurdles
Despite the promising outlook, the path for tokenized stocks is not without significant challenges.
The Regulatory Landscape: Regulatory clarity remains the single biggest question mark. Tokenized stocks likely fall under the purview of securities regulators like the U.S. Securities and Exchange Commission (SEC). How these assets are classified and governed will be critical for their widespread adoption. Platforms like Superstate and Ondo are proactively engaging with regulators and building within existing compliance frameworks, but a unified global regulatory approach is still evolving.
Market Volatility and Technical Risks: The crypto market is known for its high volatility. While a tokenized stock is designed to track the price of its underlying equity, it may still be susceptible to crypto-specific market swings and liquidity events on the trading platform. Furthermore, although blockchain networks like Solana are highly robust, they are not immune to potential technical issues or congestion, which could impact trading.
Issues of Decentralization and Custody: Most current offerings of tokenized stocks on exchanges are centralized products where the underlying share is held by a custodian. This introduces a element of counterparty risk. True, decentralized models for tokenized real-world assets are still in early stages of development and face greater regulatory scrutiny.
The Future of Capital Markets: Predictions and Trends
The momentum behind tokenized stocks suggests a profound reshaping of capital markets is underway. Several trends are likely to define the coming years.
First, the
RWA sector is experiencing explosive growth, with its total TVL surpassing
$15.73 billion as of September 2025. Tokenized equities are poised to be a major driver of this growth. Following the precedent set by Forward Industries, more public companies may explore tokenization to access global liquidity pools and offer innovative services to shareholders.
Second,
interoperability will become increasingly important. The ability for a tokenized stock created on one blockchain to be seamlessly used as collateral on a lending protocol on another chain will be key to maximizing utility. This will drive development in cross-chain communication protocols.
Finally, the line between traditional finance and decentralized finance will continue to blur. The integration witnessed with Forward Industries and Solana DeFi protocols is just the beginning. We can anticipate a future where traditional financial instruments are natively issued on blockchain rails, combining the regulatory robustness of TradFi with the efficiency and innovation of DeFi.
Conclusion
The emergence of tokenized stocks, catalyzed by landmark moves from companies like Forward Industries and enabled by platforms like Superstate and Ondo Finance, marks a pivotal moment in the evolution of finance. By harnessing the power of blockchain technology, this new asset class promises to enhance liquidity, improve operational efficiency, and unlock novel financial utilities through DeFi integration. While challenges related to regulation and market structure persist, the direction of travel is clear. The infrastructure is being built, institutional capital is flowing in, and the first major use cases are live. Tokenized stocks are not merely a speculative trend; they represent a fundamental step toward a more open, efficient, and globally accessible financial system. The fusion of TradFi and DeFi is no longer a distant possibility: it is happening now, on-chain.
References:
CoinCentral. (2025, September 22).
Forward Industries Announces $1.65B Stock Tokenization on Solana.
https://coincentral.com/forward-industries-announces-1-65b-stock-tokenization-on-solana/
Cryptonews.com. (2025, September 22).
Solana Giant Forward Industries to Tokenize $1.65B Stock on Superstate.
https://cryptonews.com/news/solana-giant-forward-industries-to-tokenize-1-65b-stock-on-superstate/
Gate.io. (2025, September 22).
Gate launches the Ondo tokenization stock market, ushering in a new era of on-chain US stock trading.
https://www.gate.com/post/status/13926901
Blockonomi. (2025, September 22).
Nasdaq-Listed Forward Industries to Issue Tokenized Equity on Solana.
https://blockonomi.com/nasdaq-listed-forward-industries-to-tokenize-equity-on-solana/
CoinCatch Team
Disclaimer:
Digital asset prices carry high market risk and price volatility. You should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance. CoinCatch is not responsible for any losses that may occur. This article should not be considered financial advice.
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