Stock Tokenization Changes the On-Chain Brokerage Competition Landscape

The forecast emerging in mid-2025 regarding the entry of major exchanges like Nasdaq and NYSE into the on-chain market has proven to be accurate. With the support of DTCC, these exchanges are ready to facilitate the direct distribution of stock tokens. This transformation has significant implications for the digital brokerage ecosystem: their roles shift from token producers to trading organizers that integrate official instruments. This dynamic creates a completely different competitive landscape for on-chain brokers operating in this space.

Role Shift: From Token Minting to Official Integration

Previously, on-chain brokers had to create and manage their own stock tokens, giving them full control but also bearing heavy operational responsibilities. Now, with Nasdaq and NYSE providing official stock tokens through DTCC infrastructure, brokers can focus on other more strategic aspects.

This change removes certain technical barriers while also reducing the competitive advantage previously held by some brokers. No longer a key differentiator, the backend or token supply becomes a commodity. As a result, competition shifts to other areas that are far more competitive and continuously evolving.

Broker Differentiation: Focus on User Experience and Product Innovation

With standardized token supplies, broker differentiation now depends on the interfaces they offer to end users. Brokers capable of creating intuitive, fast, and innovative user experiences will stand out in an increasingly crowded market.

Competitive strategies include several options:

• Entering new markets: Expanding into geographic or demographic areas that are underserved
• Tiered product innovation: Offering various leverage levels, different margin models, and trading features tailored to different investor profiles
• Experimenting with derivative instruments: Developing perpetual contracts, options, binary options, and collateralized loan products backed by stock tokens
• Integrated DeFi strategies: Combining yield farming, lending, and other passive income strategies into trading platforms
• Cost and commission optimization: Offering attractive fee structures to attract and retain users

Innovation in trading areas is likely to continue emerging, creating dynamic differentiation that is difficult for competitors to imitate.

Toward a Super App: Vision of an Integrated Trading Ecosystem

Competition will also intensify in terms of user traffic acquisition and engagement. Here, brokers can implement strategies proven in traditional internet platforms, such as gamification, loyalty programs, and social trading features.

The long-term vision for ambitious on-chain brokers is evolution into a “super app”—a monolithic platform providing access to various asset classes simultaneously. In this ecosystem, users can trade stocks, bonds, cryptocurrencies, precious metals, agricultural products, energy commodities, and forex within a single integrated interface. This model reflects the ambition to become a one-stop financial hub serving all user trading needs.

The journey toward this status requires brokers to continuously innovate, adapt, and deeply understand user preferences to remain competitive in the era of stock tokenization that has already begun.