Tokenized stocks are emerging as a key entry point for the cryptocurrency industry to penetrate Wall Street, according to Woofun AI. The underlying logic involves mapping real-world company shares, ETFs, and index products onto a blockchain, granting users permissionless transfer rights, 24/7 trading capabilities, and functionality as on-chain financial collateral.
The explosive growth in market scale is primarily attributed to the issuance of new assets rather than simple price fluctuations. By the end of June, the total market capitalization of tokenized stocks had climbed to $1.7 billion, a more than fivefold increase from $329 million in the same period last year, making it the fastest-growing category among all real-world assets (RWA).
While stablecoins, with their $1 peg mechanism, clearly reflect demand, the market cap of tokenized stocks is influenced by the price movements of the underlying securities, making it difficult to directly separate new issuance from changes in the value of existing holdings. However, existing evidence points to new issuance as the core driver: over half of the current market cap structure comes from on-chain assets that did not exist a year ago, with the remainder largely consisting of projects that migrated on-chain mid-year, a period when the annual stock price fluctuation cycle was nearly complete. This indicates that the increment stems mainly from the release of new tokens, not the appreciation of existing holdings.
Evolution of Asset Composition
The evolution of the internal asset structure reveals a shift in market focus. Data compiled by Woofun AI shows that the share of cryptocurrency-related assets, which once dominated, plummeted from 79% a year ago to 21% in June. Conversely, the "other" category, encompassing hundreds of small-scale assets, saw its share jump from 15% to 35%.
Meanwhile, the share of technology giants with market capitalizations exceeding $100 billion increased from 0.6% to 10.6%, while ETFs and index products rose from 4.5% to 17.3%. The most rapidly growing area was artificial intelligence and the chip sector, whose scale surged from less than $1 million (0.3% share) in June 2025 to 15.5%.
Robust On-Chain Activity
On-chain activity is similarly remarkable. Monthly transfer volume in June reached $9.22 billion, far surpassing the $53 million from the same period last year. This encompasses a full spectrum of behaviors including trades, transfers, and deposits into DeFi protocols.
Wall Street's Accelerating Push
The intensified actions of Wall Street giants further confirm this trend. In the past month, the DTCC completed its first batch of test trades for tokenized U.S. Treasuries and stocks on Digital Asset's Canton network, with plans to launch a refined service in October aimed at creating a direct channel to access approximately $114 trillion in assets held by the DTC.
In early July, Robinhood Markets Inc (NASDAQ: HOOD) launched its public chain mainnet, integrating traditional markets, cryptocurrencies, and real-world assets. On June 22, Intercontinental Exchange Inc (NYSE: ICE), the parent company of the New York Stock Exchange, announced a joint venture with OKX, intending to offer tokenized shares of NYSE-listed companies upon receiving regulatory authorization.
Following this, on June 16, Coinbase Global Inc (NASDAQ: COIN) announced it would provide non-U.S. users with 1:1 fully-backed U.S. stock tokens, covering dividends, full shareholder rights, and 24/7 trading functionality. Binance launched a similar product within days.
While monthly trading volume for traditional stocks remains in the hundreds of trillions of dollars, tokenized stock trading volume is still minuscule in comparison. However, the trend of issuers and platforms migrating on-chain appears irreversible, with the ecosystem continuing to expand in scale.
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