NYDIG Flags Long Path for Tokenized Stocks in Crypto
- Tokenized stocks deliver small early benefits to blockchains through fees and settlement.
- Regulation and infrastructure still limit the open use of tokenized assets in DeFi systems.
- Ethereum dominates open networks, while permissioned systems hold most of the RWA value.
Tokenized stocks are unlikely to deliver immediate large-scale benefits to the crypto market, though their impact could expand as blockchain integration improves, according to research published Friday by NYDIG. Greg Cipolaro, NYDIG’s global head of research, said the early effects on public blockchains remain limited because access, interoperability, and composability are still constrained.
He said networks that host tokenized assets initially benefit mainly from transaction fees and asset storage, while broader network effects develop over time. Interest in tokenizing real-world assets, including U.S. equities, has increased across the crypto industry. Coinbase and Kraken have both shown interest in launching tokenized stock platforms in the United States after operating similar products overseas.
Earlier this month, Securities and Exchange Commission Chair Paul Atkins stated that the U.S. financial system could adopt tokenization within a couple of years. Cipolaro said the statement suggests tokenization will become a significant industry trend. He added that the current economic impact on traditional cryptocurrencies remains limited.
Early Network Benefits Remain Narrow
Cipolaro said that blockchains such as Ethereum experience only modest gains in the early stages of tokenization adoption. He noted transaction fees represent the first measurable benefit, while networks also gain from settlement and custody activity linked to tokenized assets. As adoption increases, networks may experience more substantial network effects as more assets and users rely on blockchain infrastructure.
Still, Cipolaro said meaningful value growth depends on improved access and the ability of tokenized assets to interact with decentralized finance applications. “In the future, one could see these RWAs being part of DeFi,” Cipolaro wrote, citing collateral use, lending, and trading as potential applications. He said progress will depend on technology development, infrastructure buildout, and regulation changes.
Regulation Continues to Shape Adoption
Regulatory clarity remains a key factor influencing the pace of tokenization, according to NYDIG. Although Atkins’ comments indicate openness, existing frameworks treat many tokenized assets in the same manner as traditional securities.
Issuers must comply with investor protection rules, disclosure standards, and custody requirements. These requirements limit the ability of tokenized assets to circulate freely within open decentralized finance systems.
Cipolaro said this restricts autonomy even when assets operate on permissionless blockchains. Despite those limits, firms continue to adopt blockchain technology to enable near-instant settlement, continuous operation, transparency, auditability, and improved collateral efficiency.
Related: NYDIG Pushes Bitcoin Treasury Firms to Reject mNAV Metric
Market Size and Network Concentration
Data shows tokenized versions of traditional financial products now represent close to $400 billion in total value. The Canton Network, developed by Digital Asset, hosts about $380 billion in repurchase agreements. This represents approximately 91% of the total value of all tokenized real-world assets.
Related: Ethereum Expands Blob Capacity With New BPO-1 Upgrade
Canton operates as a permissioned network with privacy controls, which limit public participation. Among open networks, Ethereum holds the largest share with $12.1 billion in tokenized assets. BNB Chain follows with $1.8 billion.
On Ethereum, tokenized U.S. Treasury funds account for $8.6 billion of that total. Cipolaro said tokenized assets on open networks still rely on traditional financial structures, including broker-dealers, KYC procedures, accredited investors, and transfer agents.
He said broader regulatory changes could expand access and participation over time. Cipolaro said investors should monitor developments closely, even if current crypto market effects remain limited—will tokenized assets gain wider utility if regulatory barriers ease?
