Tokenized Stocks Market Surges 2,900% in a Year, Surpassing $1 Billion

The total capitalization of tokenized equities on blockchain has broken through the $1 billion threshold, marking a staggering 2,900% increase over the past year. Two dominant platforms — Ondo and xStocks — now control more than 80% of this rapidly expanding market.

A Two-Player Market

According to analytics platform RWA.xyz, Ondo holds approximately 58.74% of the tokenized stocks segment, while xStocks accounts for 23.8%. Together, these two platforms form the backbone of the market, leaving less than a fifth for all remaining participants.

Alice Li, an investment partner at Foresight Ventures, attributed the leaders' dominance to their well-designed architecture. She noted that both platforms prioritized regulatory compliance across multiple jurisdictions, stable liquidity, and seamless integration with DeFi protocols from the outset.

Marco Vidrich, co-founder of RWA.io, highlighted the segment's explosive pace: the 2,900% annual growth was fueled by major platform launches, clear regulatory frameworks, and product accessibility for retail investors.

Why This Matters

Crossing the $1 billion mark is a landmark moment for tokenized equities. Just one year ago, the segment's capitalization was roughly 30 times smaller. This rapid growth signals rising demand for on-chain versions of traditional financial instruments and reflects the maturing infrastructure supporting real-world assets on blockchain.

The heavy capital concentration among two players, however, mirrors a broader pattern across the crypto industry. DeFiLlama founder 0xngmi pointed out similar dynamics in other DeFi verticals.

"In many defi sectors almost all revenue is captured by the top 2 market participants, basically most crypto verticals are turning into duopolies" — 0xngmi (@0xngmi), original post

According to his observations, the same duopoly pattern holds true in stablecoins, derivatives, and decentralized exchanges, where the bulk of revenue consistently flows to the top two protocols.

The Broader RWA Sector Is Accelerating

Equities represent just one facet of a larger trend. The total value of tokenized real-world assets (RWA), excluding stablecoins, has reached $26 billion. US Treasury bonds make up the largest share at $11.13 billion.

Trading activity is also climbing. Since 1inch and Ondo began their partnership, trading volume for tokenized stocks and ETFs through their joint integration has exceeded $2.5 billion. Separately, xStocks reported $25 billion in trading volume for February alone.

The emergence of robust infrastructure, growing liquidity, and increasingly clear regulatory guidelines are laying the groundwork for continued expansion of tokenized securities. Yet the market's duopoly structure suggests a high barrier to entry for new competitors looking to challenge the established leaders.