Tokenized Stocks Top $3.84 Billion, Expanding Beyond Trading to Loan Collateral

The market for tokenized stocks has surpassed $3.84 billion, with their use expanding beyond trading to loan collateral. On Base, services now allow users to trade tokens linked to U.S. stocks such as Apple and Microsoft and pledge them to borrow stablecoins.

Bitcoin.com reported on October 28, citing Blockworks data, that the circulating value of tokenized stocks was about $3.84 billion. That marked an increase of about 18% over the past 30 days.

On Base, Coinbase's Ethereum layer-2 network, users can trade tokenized stocks tied to Apple, Alphabet, Microsoft, Amazon, Nvidia, Tesla and Strategy. The service is offered to eligible investors outside the U.S. Under the structure, the underlying shares are held by a regulated custodian and tokens linked to those shares are issued. The tokens can be transferred on-chain or used in decentralized finance, or DeFi, services.

According to the report, decentralized lending protocol Aave supports seven Coinbase-issued tokenized stocks on Base as collateral for USDC loans. Base is also supporting the development of credit and brokerage services built around tokenized stocks.

Coinbase Chief Executive Officer Brian Armstrong wrote on X that every asset class is moving on-chain. He added that tokenized stocks and stablecoins are growing quickly and that more assets will follow.

Companies competing in the market include Ondo, xStocks, Securitize and Coinbase. Jason Yanowitz, Blockworks co-founder, described the growth of the tokenized stock market as one of the fastest-growing charts in tech.