Avalanche Owns Five Percent of Tokenized Stocks

One Venue, One Chain

Over this past week, three U.S. tokenized stock venues picked three different blockchains to launch on. The WSJ reported Monday that NYSE chose Avalanche as the sole settlement chain for its planned 24/7 platform. On November 4, $CNTN became the first U.S. equity to trade under the SEC's Innovation Exemption. Five North sold tokenized $CNTN shares to DRW Cumberland on TSV, a permissioned venue on the Canton Network. On Monday, Formation notified the SEC that it will run a venue on Solana, targeting early 2027.

Given the strict regulations surrounding tokenized stocks in the U.S., no venue is going multichain at launch. Besides increasing complexity for regulatory compliance, fracturing activity across different networks would make it difficult to build deep liquidity while staying under the SEC's strict 0.25% average daily volume cap per asset.

The leading chains by tokenized stock volume have benefited from large exchanges launching their own tokenized stock products and leveraging their existing user bases.

• BNB Chain’s surges have been driven by Binance's bStocks
• Base’s rise was driven by Coinbase
• Solana’s volume is largely tied to Kraken’s xStocks

The chains that successfully gain market share will be the ones that attract the biggest platforms and issuers.

Tokenized Stocks Are Tracking Stablecoins’ Early Growth

Tokenized stocks have matched the growth of stablecoins closely. 240 days after crossing $1 billion, stablecoins stood at roughly $4 billion and tokenized stocks stood at $3.7 billion, while tokenized Treasuries were at $2.5 billion at the same point and have since fallen well behind. Although tokenized stocks may not continue at this growth rate, the trend is promising.

The Market Is Widening

The count of tokenized stocks and ETFs worth more than $1 million climbed from three in Jan 2025 to 287 as of Nov 8, across roughly 4,400 tokenized assets and a $3.7 billion market.

Distribution keeps broadening too. HTX launched spot trading in bStocks on Monday with 20 names including NVDA, TSLA, QQQ, and CRCL. Strategy and SpaceX are now the most tokenized issuers by asset count. Our take is that breadth is the healthier signal for a young market, because a long tail of products with real size offers a better user experience than one or two large wrappers.