DTCC, Kraken and others expand tokenized stocks and bonds

The Depository Trust & Clearing Corporation received SEC staff relief in December 2025 to run a three-year tokenization service for highly liquid DTC-custodied assets, covering Russell 1000 securities, major ETFs and U.S. Treasury bills, notes and bonds. At the same time, crypto platforms and fintech firms have rolled out retail products: Kraken reports its xStocks product reached 100 fully backed U.S. stocks and ETFs and has exceeded $25 billion in transaction volume since launching in June 2025, while one European trading app offers more than 2,000 stock tokens structured as derivative contracts linked to stocks and ETPs. Nasdaq has proposed a model where tokenized shares would carry the same CUSIP, order book priority and investor rights as traditional shares.

Industry participants point to three technical features driving interest in tokenized securities: wider distribution, programmable features and faster settlement. Edward Wu, head of BloFin Research, described the benefits as “distribution, programmability and settlement efficiency.” These features are presented as ways to move securities through wallets, fintech apps, exchanges and wealth platforms, to automate payments and corporate actions, and to align securities and cash flows on compatible digital systems.

Market architects highlight global liquidity and composability as other drivers. Anton Efimenko, co-founder of 8Blocks, stressed that tokenized securities can trade across time zones and venues, increasing the pool of potential buyers. Federico Variola, CEO of Phemex, emphasized that tokenized instruments can be used as collateral in lending, margin and structured positions, and can interact with decentralized finance functions.

Early retail products and pilots are coming from crypto exchanges, fintech apps and permissioned DeFi platforms because they can launch quickly and use stablecoins for settlement. Industry figures note larger brokerages and banks hold far more client capital and could scale tokenized offerings if they integrate them into existing accounts. Interactive Brokers reported 4.646 million client accounts and $789.4 billion in client equity at the end of Q1 2026.

Investor rights and product design vary across offerings. Tokenized instruments can convey shareholder-style ownership, a defined securities entitlement, redemption mechanics, dividend or coupon payment flows and voting rights, or they can provide only price exposure through derivative contracts. The European example of derivative-style stock tokens underscores the difference between price exposure and legal shareholder claims. Nasdaq’s proposal ties regulatory equivalence to the token conveying equity interest, dividend rights, voting rights and residual asset claims on liquidation.

Regulation, custody and liquidity remain points of attention for market participants. BloFin Research flagged unclear rights and unfamiliar counterparties in several tokenized stock products. Market observers warn that tokenized prices can diverge from underlying markets when primary venues are closed or when market-maker support is thin. The European Securities and Markets Authority issued a caution in 2025 about investor misunderstanding when tokens provide exposure but not shareholder status, and noted many projects remain small and illiquid.

On-chain data provide a snapshot of current scale. RWA.xyz estimates the distributed on-chain value of real-world assets at $26.71 billion and a broader represented asset value of $345.07 billion across tokenization initiatives. Market participants say mainstream uptake will depend on products that deliver familiar financial outcomes-Treasury yield, exposure to major stocks or ETFs, or corporate bond coupons-while keeping blockchain mechanics behind brokerage-style interfaces. Fernando Lillo Aranda, CMO at Zoomex, offered that mainstream investors focus on financial results rather than the infrastructure beneath them.

Tokenized securities are moving from proofs of concept into regulated pilots and retail products. Industry participants identify clear legal claims, dependable custody arrangements, consistent liquidity and regulatory clarity as preconditions for wider market participation. Platforms that publish asset eligibility, custody arrangements, payment mechanics and market-making plans are more likely to be evaluated by institutional and retail investors.