What are tokenized stocks?

October 22nd What are tokenized stocks?

This article is part of a series of features on tokenized securities.

Tokenized stocks represent ownership in a company through digital asset-based tokens and have the advantage of offering faster settlement, fractional ownership, and broader accessibility compared to traditional stocks, while allowing compliance to be built directly into smart contracts. The rise in tokenized equities reflects the broader momentum of tokenization, which will reshape global markets over the next decade by increasing efficiency, transparency, and programmability across asset classes. Equities stand out as a particularly impactful application, as tokenization can democratize access to capital, increase liquidity, and reduce costs for both issuers and investors. Bitfinex Securities is at the forefront of this movement, recently surpassing $250 million in assets under management, moving towards full license with the Astana International Financial Center, becoming the first company to receive a license under El Salvador’s Digital Assets Law, and strengthening its role in building a regulated infrastructure for the tokenization market.

How are tokenized stocks different from traditional equity securities?

Tokenized equity refers to the process of representing ownership in a company through digital tokens recorded on a blockchain, Layer 2, or a sidechain like Blockstream’s Liquid Network. Each token corresponds to a stock or a fraction of a stock and, depending on the design of the offering, gives investors rights similar to those associated with traditional stocks, such as profit sharing and voting rights. By existing as digital assets on a decentralized network, tokenized stocks benefit from programmability, transparency, and the possibility of near-instant settlement, as transactions are performed and recorded on a distributed ledger without relying on multiple intermediaries. This digital representation of stocks opens the way to new forms of ownership transfer and market participation.

One of the key differences between tokenized stocks and traditional securities products lies in their accessibility, 24/7 market, and transferability. Traditional equities often involve complex settlement processes, involving custodians, underwriters, and clearinghouses, and settlement times typically take several days. In contrast, tokenized shares can be transferred directly between parties on-chain, allowing for faster and more efficient settlement. Segmentation is another important feature. For example, tokenized shares can be split into smaller units, making it easier for investors to obtain fractional ownership of shares that are otherwise costly and inaccessible, thereby widening participation in the stock market.

Access to global liquidity is also an advantage of tokenized services. In traditional markets, large publicly traded companies issue Global and American Depositary Receipts (ADRs and GDRs) to provide investors with access to offshore public stocks. In Europe, companies such as Alphabet, Microsoft, and Apple list GDRs on European exchanges such as the London Stock Exchange (LSE). In the United States, ADRs are being issued by some of the world’s largest companies, particularly in Asia. The market capitalization of ADRs issued by Asian companies such as TSMC, Alibaba, HSBC, and Infosys is estimated to be around $2 trillion. Tokenized public equity fills the same niche, but better, offering access to investors around the world on a 247,365 basis.

Tokenized equity also allows underserved companies in emerging markets to connect directly with global investors through blockchain-based platforms and raise capital, bypassing traditional barriers such as costly intermediaries, untapped financial infrastructure, and limited access to public markets. This opens up new funding channels for small and medium-sized enterprises that may struggle to secure investment.
Regulation is another area where tokenized stocks and traditional stocks diverge. Traditional equity product offerings operate within an established framework enforced by securities regulators and rely on intermediaries to enforce compliance and investor protection. While tokenized stocks are typically still subject to securities laws, they often have compliance features built directly into the token itself, such as investor whitelisting, transfer restrictions, and automated reporting requirements, often implemented through smart contracts. While this approach can reduce reliance on third parties for enforcement, it also creates new regulatory challenges in ensuring token compliance across multiple jurisdictions.

Tokenized stocks offer potential advantages in terms of liquidity and global reach. Because tokens can be traded on blockchain-based exchanges, issuers have the potential to access a wider pool of investors, including those in jurisdictions where traditional market infrastructure is underdeveloped. A secondary market for tokenized shares can also increase liquidity for shareholders, providing trading opportunities for smaller companies without going public in the traditional sense. However, these benefits are still dependent on regulatory acceptance and the maturation of tokenized financial infrastructure. In contrast, traditional securitized stocks are still more entrenched and recognized, but less amenable to the innovations enabled by blockchain technology.

Tokenize everything – the potential of tokenized stocks

The momentum behind tokenization has accelerated rapidly in recent years due to advances in blockchain technology, the rise of digital asset infrastructure, and increased interest from institutional investors. Tokenization refers to the process of representing real-world assets, such as securities, real estate, goods, and intellectual property, as digital tokens on a blockchain. For example, Bitfinex Securities gives investors access to a variety of tokenized assets ranging from US Treasury bills to microfinance. Tokenization enables trading, transfer, and management of assets with greater efficiency, transparency, and programmability. Financial institutions, from global banks to fintech startups, are investing heavily in building tokenization market frameworks, with pilots and early-stage platforms already handling billions of tokenized assets. This steady growth signals a broader shift to digitalization of traditional markets, setting the stage for new standards in how ownership and value are expressed.
It is increasingly likely that most markets will see some degree of tokenization over the next decade. Regulatory frameworks are gradually adapting, and jurisdictions such as the European Union, Singapore, and Hong Kong have already developed clear rules regarding digital securities and tokenized assets. As blockchain-based payments reduce costs and enable faster transactions, both issuers and investors gain efficiency benefits that are difficult to achieve with traditional systems. Additionally, programmable features such as built-in compliance checks, automatic dividends, and governance features make tokenized assets more adaptable than traditional assets. These benefits create strong incentives for adoption, making it likely that tokenization will move from niche applications to mainstream global markets.

Tokenized stocks stand out as one of the most innovative applications that fuse digital assets and traditional markets. Stock markets are the center of global finance, but they are still burdened by legacy infrastructure, complex intermediaries, and accessibility challenges for both issuers and investors. Tokenized shares offer a way to democratize ownership, allowing fractional participation in companies that may have previously been out of reach for many investors, while reducing the cost for companies seeking capital. For private companies, tokenization provides access to secondary liquidity without the need for full listing, and for investors, it opens up more diverse investment opportunities. As institutional investor platforms start supporting tokenized stocks alongside traditional stocks, their role in the financial ecosystem could expand rapidly.

By the end of the next decade, tokenized equities could account for a significant share of global stock markets, redefining how capital formation and trading are conducted. Analysts predict that trillions of dollars of assets could migrate to blockchain-based platforms, and that equity offerings will be a significant part of this transition. A combination of regulatory clarity, institutional adoption, and technological maturity will be key drivers of this transition. Although challenges remain, such as platform standardization and global harmonization of rules, the structural benefits of tokenization are too important to ignore. As a result, tokenized stocks are positioned not only as a complement to traditional stock markets, but also as the core of the next generation of global finance.

Tokenized stock offerings and Bitfinex securities

Bitfinex Securities has emerged as a leading player in the development of tokenized securities, providing a regulated platform for businesses and investors to access a new class of financial products built on Bitcoin infrastructure. Among these services, tokenized stocks have received particular attention, allowing companies to issue stocks in a digital format that is more transparent, efficient, and globally accessible than traditional securities. However, tokenized stocks are only part of the wide range available at Bitfinex Securities, which also includes debt instruments and other financial instruments. By creating a compliant environment for these assets, Bitfinex Securities is contributing to bridging the gap between traditional financial markets and digital asset markets.

At Astana Finance Days 2025, Bitfinex Securities announced a significant milestone, announcing that the platform’s assets under management (AUM) are approaching $250 million. This achievement highlights both the growing demand for tokenized securities and the platform’s ability to attract issuers and investors into a regulated ecosystem. This milestone serves as evidence of the scalability of tokenization when combined with compliant infrastructure and our focus on investor protection. We also position Bitfinex Securities as a reference point in the rapidly expanding digital asset-based financial products market.

In addition to the AUM milestone announcement, Bitfinex Securities announced its intention to exit the Astana International Financial Center (AIFC) regulatory sandbox and transition to a full license. This step marks an important stage in our future efforts and signals our readiness to operate under a fully mature regulatory framework. Obtaining a full license will strengthen our ability to deliver innovative products, expand the range of services available on our platform, and make our platform an even more significant hub for tokenized securities. By aligning with AIFC’s forward-thinking approach to digital finance, Bitfinex Securities is helping the region become a hub of innovation in tokenization.

Bitfinex Securities also sets a precedent outside Kazakhstan, becoming the first company to receive a license under El Salvador’s Digital Assets Law. This distinction is a testament to our global leadership ambitions and pioneering role in regulated tokenized finance. Operations in both El Salvador and Kazakhstan demonstrate that Bitfinex Securities can work with forward-thinking jurisdictions that have adopted digital asset-based financial markets. These achievements demonstrate how Bitfinex Securities is establishing a leadership role in the tokenization space, not only through technological innovation, but also by ensuring the regulatory foundation necessary for long-term growth and adoption.