The Trillion-Dollar Stock Token Market Is Accelerating, and the Breakthrough Point of the Next Bull Market May Have Emerged Hotcoin Research | February 2-6, 2026

Introduction

I. Advantages and Mechanisms of Stock Tokens

The Advantages of Stock Tokens

• Global Accessibility: Through encrypted wallets and open networks, users worldwide can access tokenized US stocks and ETFs without traditional brokerage accounts, significantly lowering the barrier to cross-border investment
• Fractional Ownership: Investors can purchase small denominations, enabling more flexible portfolio allocation and making participation more accessible for retail and emerging-market investors
• 24/7 Trading: Unlike traditional stock markets with limited trading hours, tokenized equities can be traded around the clock, improving market efficiency and liquidity management
• Faster Settlement: On-chain transactions typically support real-time settlement (T+0), reducing clearing risks and intermediary costs
• Programmability: Smart contracts can automate dividend distribution, governance weighting, and transfer restrictions, unlocking new possibilities for financial product design
• DeFi Integration: Tokenized stocks can be used as collateral, participate in portfolio strategies, and expand the functionality of on-chain financial ecosystems

Stock Token Issuance Mechanisms

1. Real Stock Mapping Model

• Shareholder Rights: In most cases, holders receive economic rights such as price exposure and dividends, but do not possess voting or governance rights unless a compliant on-chain registration mechanism is implemented
• Custody Structure: Assets are generally held by independent third-party brokers or trust institutions to ensure segregation and solvency protection
• Compliance: Issuance typically follows securities regulations such as Reg D, Reg A+, or MiCA, and is supervised by recognized financial authorities, making it the most compliant and institutionally accepted model

1. SPV Mapping Model

• Shareholder Rights: Limited to potential economic returns upon exit events such as IPOs or acquisitions
• Custody Structure: Assets are managed internally by project-controlled SPVs, often lacking independent third-party custody, and reducing transparency
• Compliance: Frequently falls into regulatory gray areas and may face jurisdictional restrictions or higher legal risks

1. Synthetic Model

• Shareholder Rights: No equity ownership or cash-flow entitlement; investors bear purely price-tracking risk
• Custody Structure: No off-chain custody required, fully dependent on smart-contract mechanisms
• Compliance: Often classified similarly to CFDs or synthetic futures and may be restricted or prohibited in multiple jurisdictions

II. Current Situation and Performance of Stock Tokens

III. Representative Publishers of Stock Tokens

1. Ondo Finance

1. xStocks

1. Securitize

1. WisdomTree

1. Superstate Opening Bell

1. Robinhood

1. PreStocks

IV. Risks and Opportunities of Stock Tokens

Main Risks

1. Compliance and Policy Risks Regulatory uncertainty remains the primary risk, as stock tokens sit at the intersection of traditional securities and crypto assets. Different jurisdictions classify stock tokens as securities, derivatives, or illegal issuances. When regulations tighten, related services may be suspended, as previously seen with Binance and FTX stock-token products. Even compliant tokens must continuously adapt to evolving securities laws across regions, creating barriers to cross-border expansion. For example, the United States has not formally approved public stock-token trading for retail investors, whereas the European Union’s MiCA framework is still being interpreted. Policy shifts could result in restricted platform access or token delistings.
2. Legal Rights and Investor Protection Many stock tokens do not confer on holders true shareholder status, particularly in synthetic or gray-area structures, leaving investors without clear legal claims in disputes or issuer defaults. Bankruptcy scenarios further complicate matters: if a custodian or holding institution fails, asset recovery pathways remain uncertain and largely untested in courts. In addition, the absence of voting rights prevents token holders from participating in corporate governance decisions, which may negatively impact investor interests during events such as mergers, restructurings, or privatizations.
3. Liquidity and Premium/Discount Risk Although overall market capitalization has grown, stock-token liquidity often remains lower than that of traditional equity markets. Some tokens exhibit limited daily volume and wide bid-ask spreads, making them vulnerable to premiums or discounts relative to underlying assets. When redemption mechanisms are inefficient, price deviations may widen further. For instance, private-company equity tokens may trade well below the company’s latest financing valuation, resulting in floating losses for holders. In thin markets, large sell orders can also trigger sharp price declines and liquidity drains.
4. Technical and Security Risks Stock tokens operate on blockchains via smart contracts, exposing them to vulnerabilities such as contract exploits, oracle manipulation, and hacking incidents. A compromised contract could result in unauthorized token transfers or asset mismatches. Oracle reliability is especially critical for synthetic tokens; inaccurate feeds can cause severe price divergence and liquidation cascades. Network-level instability also affects trading continuity. Historical blockchain outages have demonstrated the risk of interrupted access. While most major tokens undergo audits and are deployed on mature chains, technical risk cannot be fully eliminated and requires continuous security investment.
5. Credit and Counterparty Risk Purchasing a stock token often entails exposure to the issuer's or custodian's creditworthiness. Compliant structures typically employ independent trustees, but gray-area models may leave users functioning merely as unsecured creditors. Misappropriation of funds or operational failure can lead to investor losses. Even with custodial arrangements, legal and structural complexities—such as opaque SPV governance can reduce transparency and oversight. These counterparty risks must be mitigated through auditing, disclosure standards, and legal safeguards; otherwise, trust events could significantly damage market confidence.

Potential Opportunities

1. Cross-Border Investment and Financial Inclusion Stock tokens can reconstruct global investment channels by reducing geographic and institutional barriers. Traditionally, investors faced obstacles such as account-opening restrictions, foreign-exchange controls, and limited market access. Tokenization enables participation through internet connectivity and encrypted wallets, offering emerging-market investors new entry points into global capital markets. Over time, this may significantly reduce the cost and threshold of international securities investment while improving the efficiency of global wealth allocation.
2. Enhanced Market Efficiency and Liquidity Continuous trading and near-instant settlement can enhance information responsiveness and reduce counterparty risk relative to traditional T+2 cycles. Clearing pressure decreases, and portfolio adjustments become more flexible. Fractional ownership also broadens participation, attracting smaller investors and increasing overall liquidity. Institutional adoption, such as the acceptance of tokenized securities as collateral could further accelerate asset turnover and operational efficiency.
3. Innovative Financial Products and Services Stock tokens can integrate with DeFi infrastructure to create new financial instruments and service models. Examples include using equity tokens as collateral for stablecoin lending, providing liquidity on decentralized exchanges, and employing structured derivative strategies. Future developments may include on-chain index funds, automated portfolio management, and programmable dividend distribution. Tokenized equities may also be used for payment, settlement, and supply-chain finance, reducing intermediary costs and expanding the scope of financial innovation.
4. Opportunities for Traditional Financial Institutions For securities firms and exchanges, stock tokens represent both disruption and opportunity. Leading institutions are already investing in digital-asset divisions, custody services, and tokenized-asset platforms. As regulations clarify, traditional players can leverage brand trust, compliance infrastructure, and client networks to capture market share. Partnerships with token issuers for custody, liquidity provision, and market-making are becoming increasingly common. For multinational financial groups, tokenization opens new business lines and strengthens global connectivity.
5. Catalyzing Capital-Market Reform The rise of stock tokens pressures traditional markets to modernize settlement cycles, reduce fees, and extend trading hours. Exchanges are exploring T+0 settlement and all-day trading mechanisms, while legal frameworks are gradually recognizing electronic equity registration and smart-contract execution rights. Digitized securities could enable real-time regulatory oversight and greater transparency, thereby contributing to long-term market stability and risk management.

V. Outlook on the Future Trend of Stock Tokens

1. Large-Scale Market Potential Industry projections suggest that a meaningful share of global securities could be tokenized within the next decade. As one of the largest asset classes, equities alone represent a trillion-dollar potential for tokenization. In cross-border investment and private equity markets, tokenization can unlock dormant liquidity and broaden participation, thereby supporting the emergence of a globally unified, continuously operating capital-market framework.
2. Acceleration of Traditional Exchange Transformation Stock tokens are reshaping the business models of conventional securities firms and exchanges. Institutions may simultaneously launch digital-asset segments and optimize legacy processes to reduce costs and retain customers. Emerging platforms have already demonstrated 24-hour trading capabilities, while established exchanges continue to research blockchain-based settlement. Over time, direct token-trading boards and blockchain-enabled listing processes may become viable under regulatory approval, potentially lowering IPO costs and enabling hybrid brokerage models that serve both traditional and tokenized assets.
3. Gradual Improvement of Regulatory Frameworks Regulators worldwide are increasingly monitoring and formalizing rules for tokenized securities. Future frameworks are expected to provide clearer compliance pathways, licensing structures, and investor-protection standards. Jurisdictions such as the United States, the European Union, Hong Kong, and Singapore are likely to refine digital securities regulations, thereby reducing uncertainty, attracting institutional participation, and fostering sustainable market growth.
4. Strengthening the Mapping of Shareholder Rights A key development trajectory is the closer alignment between token ownership and real shareholder rights. Models that integrate on-chain shareholder registries, voting systems, and programmable dividends demonstrate the feasibility of bridging digital tokens with corporate governance. As adoption increases, the gap between tokenized and traditional shares may narrow, enabling outcomes of “same shares, same rights, same benefits.”
5. Synergistic Development with Other Real-World Assets Tokenization is expanding beyond equities to bonds, funds, commodities, and real estate. A comprehensive on-chain asset ecosystem may emerge, where diversified portfolios combine multiple token types within unified wallets and DeFi protocols. Such integration could enhance capital mobility, enable collateralized borrowing against tokenized government bonds, and support automated portfolio rebalancing through smart contracts — ultimately improving global resource-allocation efficiency.

Conclusion

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