Key takeaways:
- The SEC is to prepare the so-called “innovation exemption”, a special regulatory exemption that could allow trading in tokenized shares in a more transparent legal model.
- According to Ryan Lee of Bitget Research, the tokenized stock market could reach a value of $150 to $500 billion within a decade if the US creates clear rules for blockchain-based financial assets.
The SEC may facilitate trading of tokenized stocks
A tokenized share is a digital token recorded on the blockchain that reflects exposure to the shares of a traditional company, for example one listed on a US stock exchange. In practice, such an instrument may work similarly to a “packaged” version of shares, but it does not always provide the same rights as a classic security.
This is a very important distinction. Most such tokens do not have the consent or direct support of the companies whose shares they track. They also do not provide typical shareholder rights, such as voting rights or participation in dividends.
This means that for a retail investor, a “tokenized share” is not always the same as a share purchased by a classic brokerage house. The difference may concern property rights, settlement rules, investor protection, liquidity and counterparty risk.
Ryan Lee from Bitget Research: the market could reach USD 500 billion
The niche of tokenized shares is growing even faster. According to RWA.xyz data, the segment of tokenized public shares and ETFs currently reaches a value of approximately USD 1.08 billion, with a monthly transfer volume of USD 2.3 billion.
Lee assumes that with clearer rules in the US, tokenized shares could reach a value of $150 to $500 billion over the next decade. This would not mean taking over the entire stock market. It would be enough for tokenization to take over a small part of global turnover, especially in areas where quick settlement, trading outside standard session hours and easier access to international capital are important.
Why is share tokenization so important?
The biggest change does not concern the “packaging” of shares in a token. It’s about infrastructure.
The traditional U.S. stock market currently operates on a T+1 settlement cycle. This means that the transaction is formally settled one business day after its conclusion. The SEC introduced this standard in May 2024, shortening the earlier T+2 cycle. The regulator then argued that shorter settlement reduces risk and improves market efficiency.
Blockchain can push this model even further, towards near real-time settlements. In practice, this would mean faster capital release, reduced risk for intermediaries and the ability for the market to operate around the clock.
For large financial institutions, this is of operational importance. The capital that is currently “frozen” in the settlement process could be returned to circulation faster. Stablecoins, on the other hand, could act as a liquid hedge in various trading environments.
Stablecoins as fuel for tokenized markets
Stablecoins, i.e. tokens that maintain a stable value against the dollar or other currency, are today one of the main elements of the cryptocurrency market infrastructure. According to DeFiLlama, their total capitalization is approximately USD 323 billion, and USDT and USDC maintain the dominant position.
In the context of tokenized stocks, stablecoins can act as digital settlement cash. The investor does not have to wait for traditional bank transfers or settlements between multiple intermediaries. It can use stablecoins as collateral, a means of payment, or a tool to quickly transfer liquidity between platforms.
It is this element that may give an advantage to cryptocurrency exchanges. They already have 24/7 trading infrastructure, integrated security systems, deep stablecoin liquidity, and users accustomed to operating on the blockchain.
Crypto exchanges, brokers and Wall Street are starting to come together
If share tokenization develops in a regulated manner, the line between cryptocurrency exchanges, brokerage houses and traditional capital market operators will become increasingly blurred.
This process is already visible. In February 2026, the SEC granted WisdomTree a special exemption allowing intraday trading of tokenized money market fund shares. Reuters described this decision as another step in expanding tokenization of capital markets.
The SEC also previously noted that tokenization of various types of securities is possible, including stocks, bonds, options and security-based swaps. However, the mere fact of recording an instrument on the blockchain does not automatically remove the obligations arising from securities law.
Risks: investor rights, liquidity and parallel market
The biggest risk is that tokenized shares may create a parallel market that operates according to different rules than traditional exchanges. From an innovation perspective, this sounds attractive. From an investor protection perspective, it gets trickier.
If the token does not provide full shareholder rights, the investor must know what he is really buying. If the token is synthetic, i.e. it only tracks the share price, the question arises who is responsible for its coverage, liquidity and compliance with the price of the underlying instrument. If trading takes place outside a traditional exchange, the rules of supervision, reporting and dispute resolution become important.
What does this mean for the crypto market?
For the cryptocurrency industry, this may be one of the most important trends in the coming years. Tokenization moves blockchain from the area of speculative tokens to the infrastructure of traditional finance. If stocks, funds, bonds, commodities and money market instruments run on the blockchain, crypto exchanges could become more than just a place to trade Bitcoin and altcoins.
However, this does not mean a simple growth scenario. The market for tokenized shares is still small, experimental and dependent on regulators’ decisions. The USD 150-500 billion potential described by Bitget Research is a development scenario, not a guarantee. Much depends on whether the SEC will create a framework that will reconcile the speed of blockchain with the investor protection known from traditional markets.
For now, the most important thing is the direction itself: the US regulator is not only analyzing tokenization, but is increasingly allowing solutions that a few years ago would have been treated as too risky for mainstream finance.
Reservation: This article is for informational and educational purposes. It does not constitute investment advice, a recommendation to buy or sell any assets, or legal analysis. Cryptocurrencies, tokenized securities, stablecoins and other digital assets involve high risks, including the risk of loss of capital, price volatility, liquidity issues and regulatory changes. Before making financial decisions, it is worth verifying the information yourself and consulting a licensed advisor.
