With the rapid development of blockchain technology and the digital transformation of global financial markets, the Tokenization of U.S. Stocks, as a cutting-edge financial innovation, is gradually moving from concept to reality. By converting traditional stock assets into digital tokens on the blockchain, tokenization breaks the limitations of geography and time, providing global investors with more efficient and convenient investment channels. However, this emerging field, while bringing enormous potential, also faces multiple challenges related to compliance, technology, and market acceptance. This article explores the logic and significance behind U.S. stock tokenization from four aspects: the current situation, potential, compliance pathways, market impact, and investment considerations, attempting to provide investors and industry observers with a comprehensive perspective.

Part One: Overview and Potential Analysis of US Stock Market Total Market Capitalization and Tokenization Projects

Total market capitalization of US stocks
As of June 2025, the total market capitalization of the US stock market has surpassed $55 trillion, accounting for approximately 50% of the global stock market capitalization, firmly holding the top position in the global capital markets. This scale is attributed to the robust growth of the US economy, continuous innovation in the technology sector, and a mature financial infrastructure.

Tech giants listed on NASDAQ and the New York Stock Exchange (NYSE), such as Apple, Microsoft, and NVIDIA, have market capitalizations in the trillions of dollars, becoming the core pillars of the US stock market. The high liquidity, transparency, and global influence of the US stock market make it an ideal target for tokenization.

Overview of US Stock Tokenization Projects and Platforms
The tokenization of US stocks transforms traditional stocks into digital tokens through blockchain technology, allowing investors to indirectly own the rights to the underlying stocks by holding tokens. These tokens are typically pegged to real stocks at a 1:1 ratio, supporting round-the-clock trading, fractional equity investments, and decentralized settlement. Here are the current major tokenization projects and platforms:

• Kraken: In May 2025, Kraken announced the launch of tokenized US stock trading services for non-US customers, covering popular stocks such as Apple and Tesla. The platform utilizes blockchain technology to enable 24/7 trading, breaking through the traditional trading time limitations of the stock market.
• Coinbase: Coinbase is communicating with the SEC to seek approval for launching on-chain U.S. stock trading services, planning to cover spot, futures, and decentralized exchange (DEX) functions, challenging traditional brokers like Robinhood.
• Bybit: On May 19, Bybit launched USDT-based stock contracts for difference (CFDs) trading on its TradFi platform. Users can trade US stocks directly using USDT collateral by simply creating an MT 5 account. Currently, the stock includes a total of 78.
• Ondo Finance: Ondo Finance is a decentralized institutional-grade financial protocol that has partnered with the Trump family’s WLFI project. As early as February 5, Ondo Finance announced the upcoming launch of the RWA tokenization trading platform Ondo Global Markets (Ondo GM), allowing users to buy and sell stocks, bonds, and ETF tokens backed 1:1 by real-world assets.
• MyStonks: MyStonks is a decentralized digital asset trading platform that will launch an on-chain US stock token market in May 2025. It collaborates with global asset management institutions to provide custody-backed tokenization of US stock trading services, covering popular stocks like Apple, Amazon, and Google. Users can purchase stock tokens using USDC or USDT, and the platform converts stablecoins into US dollars to buy real stocks and mint ERC-20 tokens at a 1:1 ratio.

In addition, there are also on-chain platforms and projects like Backed, Dinari, Helix, DigiFT, etc., that are worth paying attention to.

The potential scale and development prospects of on-chain US stocks.
According to forecasts by institutions such as the Boston Consulting Group (BCG), the market size for tokenization of Real World Assets (RWA) is expected to reach between $2 trillion and $30 trillion by 2030, covering assets such as stocks, bonds, and real estate. Currently, the market size for tokenized assets is approximately $12 billion (excluding stablecoins), with tokenization of US stocks being a core component, showing tremendous potential.

Development Prospects:

• Global Accessibility: Tokenization eliminates geographical barriers, allowing non-U.S. investors to invest in U.S. stocks without the need for traditional brokerage accounts, significantly lowering the entry threshold.
• 24/7 Trading: The blockchain supports 7×24 hours of trading, compensating for the shortcomings of traditional stock market closure times and enhancing market flexibility.
• Cost Efficiency: Decentralized settlement reduces intermediary links and lowers transaction costs. For example, MyStonks’ trading fees are as low as 0.3%, far below traditional brokers.
• Liquidity enhancement: Fractional Ownership makes high-priced stocks like Amazon (around $4000 per share) more attractive to retail investors, promoting market liquidity.
• Financial Innovation: Tokenized stocks can serve as collateral for DeFi protocols, giving rise to new products such as on-chain lending and derivatives trading.

The tokenization of U.S. stocks reduces intermediaries and optimizes settlement processes through blockchain technology, lowering information asymmetry and transaction friction costs, thereby attracting more global investors and enhancing market size and liquidity. However, the realization of tokenization scale relies on technological maturity, regulatory clarity, and market trust. In the next five to ten years, with the optimization of blockchain technology and the improvement of regulatory frameworks, the tokenization of U.S. stocks is expected to become one of the mainstream methods of global investment.

Part Two: Compliance Risks, Development Barriers, and Compliance Pathways

Compliance risks and development obstacles
The tokenization of U.S. stocks faces significant compliance risks and developmental obstacles while innovating:

• Regulatory Uncertainty: The SEC has a strict regulatory stance on tokenized securities, and may view them as securities assets subject to the Securities Exchange Act of 1934. The past harsh enforcement against ICOs indicates that the SEC’s scrutiny of tokenization projects is extremely rigorous.
• Anti-money laundering and KYC requirements: Tokenization platforms must strictly implement KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations to ensure the legitimacy of the source of funds.
• Cross-border regulatory challenges: The tokenization of US stocks targeting the global market must address regulatory differences across various countries and regions.
• Technical and security risks: Vulnerabilities in smart contracts, hacker attacks, or improper management of private keys may lead to asset loss.
• Market Acceptance: Traditional investors have a low level of trust in blockchain technology, and some investors adopt a wait-and-see attitude due to their unfamiliarity with on-chain transactions.

Exploration and Design of Compliance Pathways
To promote the tokenization of US stocks, the platform needs to design a clear compliance path:

• Broker-dealer license: As practiced by Dinari, a US stock tokenization project, registering as a SEC-recognized broker-dealer is key to compliance, ensuring the legal issuance and trading of tokenized stocks.
• Regulatory cooperation: Communicating with agencies such as the SEC and the Commodity Futures Trading Commission (CFTC) to develop a tokenization framework that complies with securities regulations. For example, Coinbase is negotiating with the SEC to ensure that tokenized shareholders enjoy the same rights as traditional shareholders.
• Standardized Technology: Adopting Polymath’s ERC-1400 or Securitize’s compliance framework to ensure token transparency and auditability.
• KYC/AML process: Collaborate with blockchain analytics firms to enhance transaction transparency and reduce money laundering risks.
• Cross-border compliance coordination: Collaborate with institutions such as the Hong Kong Monetary Authority and the EU ESMA to establish multinational tokenization trading standards.

According to institutional economics, a clear regulatory framework and property rights protection are the cornerstones of market development. Tokenization platforms reduce institutional uncertainty through compliant pathways, which is conducive to building investor trust, thereby reducing market friction and promoting capital flow and market scale expansion.

Part Three: The Multidimensional Impact of Tokenization of US Stocks

Impact on the coin circle

• Capital inflow: Tokenization attracts traditional financial investors into the crypto market, increasing the liquidity and market value of crypto assets. By 2025, the total market value of the global crypto market is expected to reach $3.3 trillion, and the introduction of tokenized stocks will further drive capital inflow.
• Ecosystem Integration: The tokenization of US stocks promotes the integration of DeFi and traditional finance, giving rise to new products such as on-chain lending and derivatives. For example, tokenized stocks can be used as collateral to participate in DeFi protocols, enhancing asset utilization.
• Intensifying competition: Crypto exchanges like Coinbase, Kraken, and MyStonks are increasingly competing with traditional brokers, which may reshape the industry landscape.
• Impact on Traditional Financial Markets
• Innovative trading models: 24/7 trading and fractional ownership models challenge the business models of traditional brokerages, forcing platforms like Robinhood to accelerate their digital transformation.
• Cost and Efficiency: Blockchain settlement reduces intermediary links, lowering transaction costs, but may compress the profit margins of traditional brokers.
• Regulatory Pressure: The proliferation of tokenization will prompt the SEC to accelerate the formulation of new rules, increasing compliance costs for traditional financial institutions.

Impact on the US economy

• Strengthening of Financial Center Status: The tokenization of US stocks enhances the global appeal of the US capital markets, solidifying its status as a financial center.
• Innovation-driven: tokenization promotes the application of blockchain technology in the financial sector, facilitating the collaborative development of technology and finance.
• Potential risks: Regulatory lag may lead to market manipulation or liquidity crises, threatening financial stability.

Impact on the pattern of world economic development

• The extension of dollar hegemony: US stock tokenization priced in dollars, combined with the global circulation of stablecoins, reinforces the dominant position of the dollar in the global financial system.
• Emerging Market Opportunities: Tokenization lowers investment barriers, providing emerging market investors with the opportunity to participate in US stocks and promoting global capital flow.
• Geoeconomic Game: The U.S. push for tokenization may prompt China, the European Union, and others to accelerate their digital asset strategies, altering the global financial competitive landscape.

Technological innovation is a key driving force for economic growth. The tokenization of US stocks, as a combination of technology and finance, will promote the digital transformation of the American economy and enhance long-term growth potential. However, excessive innovation may lead to a regulatory vacuum, necessitating a balance between innovation and stability. The tokenization of US stocks expands the global use of the US dollar through stablecoins (such as USDC, USDT), consolidating its status as a reserve currency. At the same time, tokenization promotes the efficiency of global resource allocation but may increase the financial volatility risk in emerging markets.

Part Four: Considerations for Investing in On-Chain US Stocks, Taxes, and Risk Management

Investment Considerations

• Choose compliant platforms: Prioritize SEC-certified platforms such as Dinari and MyStonks, and avoid the legal risks of non-compliant platforms.
• Understand the token mechanism: Confirm whether the tokens are 1:1 pegged to real stocks and whether the redemption mechanism is transparent.
• Technical Risk Assessment: Check the platform’s blockchain security, such as smart contract audits, multi-signature wallets, etc.
• Market volatility: Tokenized stocks are influenced by the dual volatility of US stocks and the crypto market, and overall market risks need to be monitored.

Tax issues
In the United States, tokenization of stock trading is considered securities trading and must comply with the tax regulations of the Internal Revenue Service (IRS):

• Capital Gains Tax: Transaction profits are subject to short-term (holding period ≤ 1 year, tax rate 10%-37%) or long-term (holding period > 1 year, tax rate 0%-20%) capital gains tax.
• Transaction Records: Investors must retain complete transaction records, including buying and selling times and prices, for tax reporting purposes.
• Cross-border taxation: Non-U.S. residents must comply with the tax regulations of their country of residence, and it is advisable to consult a professional tax advisor.
• Stablecoin Taxation: Using USDC or USDT for transactions may require reporting capital gains for each trade, increasing tax complexity.

The tax complexity of tokenized stocks may increase compliance costs for investors and affect market participation. Clear tax guidelines and automated tax tools can reduce the compliance burden and promote market development.

Risk Management

• Diversified investment: Avoid concentrating investments in a single tokenized stock or platform to reduce non-systemic risk.
• Stop-loss strategy: Use the stop-loss feature provided by the platform to control losses from market fluctuations.
• Security measures: Regularly check account security to ensure the safety of private keys and multi-signature wallets.
• Regulatory Dynamics: Pay attention to policy changes from institutions like the SEC and adjust investment strategies in a timely manner.

SUM

The tokenization of US stocks, as a bridge between blockchain technology and traditional finance, demonstrates the potential to reshape global capital markets. By lowering transaction costs, enhancing liquidity, and expanding market accessibility, tokenization promotes efficiency and inclusivity in financial markets.

However, compliance risks, technical challenges, and market acceptance remain the main obstacles to its development. From an economic perspective, tokenization injects new momentum into the economy of the United States and even the global economy by reducing transaction friction, optimizing resource allocation, and promoting technological innovation, but one must be vigilant about the risks posed by regulatory lag and market volatility.

For investors, on-chain US stocks provide a new investment opportunity, but it is essential to carefully select compliant platforms, understand tax requirements, and implement effective risk management strategies. The rise of platforms like Dinari and MyStonks marks the rapid maturation of the tokenization market, with their compliance and security mechanisms setting benchmarks for the industry. In the future, with the improvement of regulatory frameworks and advancements in blockchain technology, US stock tokenization is expected to become an important part of the global financial market, reshaping the investment landscape and ushering in a new era of digital finance.

Lastly, the risk of on-chain US stocks is relatively high, NFA, DYOR!

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