Tokenized Stocks Explained: xStocks, Robinhood and Nasdaq

Tokenized stocks are blockchain tokens that track the price of a listed share, such as Apple or Tesla, and can trade 24/7 in crypto wallets and on exchanges. In most products sold today, you do not own the share itself. You own a debt security or certificate issued by a company that holds the share and promises to pass on its value. As of 2 October 2026, tokenized stocks were worth about $3.20 billion across 7,845 tokens and 4.21 million holders, according to rwa.xyz.

That is changing. The SEC has approved Nasdaq's rules for trading securities in tokenized form, and the DTCC is moving its tokenization service from pilot to launch. This guide explains how xStocks, Robinhood Stock Tokens and Ondo work, what Nasdaq's approval does, what you legally own in each case, and the risks.

What are tokenized stocks?

A tokenized stock is a token whose value is tied to a share of a public company or an exchange-traded fund (ETF). The token lives on a blockchain, so it can be held in a self-custody wallet, sent to another address in minutes, traded outside market hours, and in some cases used as collateral in DeFi.

The important question is what the token is legally. On 28 January 2026, three SEC divisions published a joint Statement on Tokenized Securities that sorts the market into three types:

• Issuer-sponsored. The company itself issues its shares in tokenized form. The blockchain is just the shareholder register, and the token carries the same rights as the share.
• Custodial third-party. Another firm holds the real share and issues a token representing it, similar to a depositary receipt. You take on that firm's credit risk.
• Synthetic. A third party creates an instrument, such as a linked note or a swap, that mirrors the share's performance without giving you a claim on the share.

The staff's message was the same as SEC Commissioner Hester Peirce's July 2025 statement, "Enchanting, but Not Magical": tokenized securities are still securities, and the economic reality of the instrument decides how it is treated (National Law Review).

The main tokenized stock platforms in 2026

By value, the largest platforms as of 2 October 2026 were Ondo ($921.7 million), bStocks ($831.0 million), xStocks ($584.2 million) and Securitize ($432.4 million), per rwa.xyz. The largest single token was Securitize's own tokenized shares (SECZ) at $355.6 million, an issuer-sponsored example.

xStocks (Kraken)

xStocks are issued by Backed Assets (JE) Limited, a Jersey company, as tracker certificates. These are debt instruments that track a US share 1:1 and are backed by shares held with custodians including InCore Bank, Maerki Baumann and Alpaca Securities, according to a BlockEden analysis of the issuer's prospectus. Holders get economic exposure but no voting rights and no right to receive the actual shares. xStocks are not offered in the US, UK, Canada or Australia. Kraken acquired Backed Finance in December 2025 (Kraken), and xStocks reported more than $25 billion in total transaction volume across exchanges, DEXs and mint/redeem activity (Kraken blog).

Robinhood Stock Tokens

Robinhood runs two products. Its original "Classic" Stock Tokens, sold through the Robinhood Europe app, are derivative contracts with Robinhood Europe, UAB, and grant no rights in the actual shares, per Robinhood Europe's terms. On 1 July 2026, Robinhood launched the public mainnet of Robinhood Chain, a layer 2 built on Arbitrum, alongside a new on-chain Stock Token range. These are "tokenised debt securities issued by Robinhood Assets (Jersey) Limited" that give economic exposure "but do not grant investors legal rights" in the underlying shares, and are available in more than 120 countries but not the US, per Robinhood's announcement. They trade 24/7 on DEXs on Robinhood Chain and can be used in lending pools.

Robinhood's 2025 launch also produced the clearest warning about what these tokens are. When Robinhood gave away "OpenAI tokens" in a promotion, OpenAI said on 2 July 2025 that "these 'OpenAI tokens' are not OpenAI equity" and that it had not approved any transfer (TechCrunch).

Ondo Global Markets

Ondo launched its tokenized stocks on 3 September 2025 for non-US investors. The underlying shares are held with US-registered broker-dealers and a regulated custodian, and a security agent holds a first-priority security interest for token holders, per Ondo. The tokens launched on Ethereum, with BNB Chain and Ondo Chain announced next.

For a wider list of tokenization platforms, including the ones focused on funds and credit, see our best RWA tokenization platforms in 2026.

Nasdaq tokenization: what the SEC approved

Nasdaq filed its proposal on 8 September 2025. On 18 March 2026 the SEC approved it, in an order enabling "the trading of securities on the Exchange in tokenized form" (Release No. 34-105047).

This model is very different from xStocks or Robinhood's tokens:

• The scope is Russell 1000 stocks and ETFs tracking major indexes, per Ledger Insights.
• Tokenized and conventional shares carry the same rights and trade on the same order book. A buyer sets a tokenization flag with the blockchain and wallet address they want the shares delivered to.
• Trades still settle T+1. Tokenization happens after settlement, at the Depository Trust Company (DTC), which received SEC no-action relief in December 2025.

The plumbing behind it is DTCC's tokenization service. On 15 July 2026, DTCC processed its first live production trades of tokenized stocks, ETFs and Treasuries with major banks and asset managers, using the Canton Network and Hyperledger Besu, CoinDesk reported. DTCC plans a broader launch in October 2026, when eligible participants can convert certain securities into tokens for production use (CoinDesk, 4 May 2026). As of 2 October 2026, that launch is planned but we could not confirm it has gone live.

What you actually own

This is the single most important point about tokenized stocks.

In plain terms, most tokens available to crypto users today make you a creditor of an issuing company that holds shares on your behalf. If the issuer, custodian or collateral arrangement fails, you rely on the security package and the courts of that jurisdiction, not on your rights as a shareholder. Only the issuer-sponsored and DTC-based models give you the share itself.

Eligibility and investor checks

Because tokenized stocks are securities, every platform must decide who can buy. That is why the US, and often the UK, Canada and Australia, are excluded from the offshore products, and why you have to pass identity checks before you can mint or redeem.

In practice, issuers and the exchanges that list their tokens verify identity, residence and sanctions status at onboarding and then allow-list wallets. They often use specialist KYC, KYB and AML vendors such as iDenfy for this. For how exchanges choose these tools, see our guide to KYC and KYB software for crypto exchanges. Secondary trading on DEXs can be more open, but the right to mint and redeem at the real share price usually stays with verified holders.

Risks of tokenized stocks

• Issuer and custody risk. With certificate and debt structures, you depend on the issuer staying solvent and the custodian holding the shares. Check who holds the collateral and how it is enforced.
• Price gaps outside market hours. Tokens trade 24/7, but the US market does not. At weekends the token price is set by token traders alone and can move away from where the share opens on Monday.
• Liquidity. Many of the 7,845 tokens tracked by rwa.xyz have little depth. A token with no buyers can trade far from its reference price.
• Missing rights. No votes, and dividends may arrive as rebases or reinvestment rather than cash. Corporate actions are handled by the issuer, not by the company.
• Regulatory risk. Products are licensed in specific jurisdictions. If rules change, access can be cut or redemptions restricted.
• DeFi layer risk. Using tokens as collateral adds smart contract, oracle and liquidation risk. Our checklist on how to check a DeFi protocol is safe applies.

JewelSwap does not offer tokenized stocks. It is a crypto-native protocol on MultiversX, Sui and Radix, focused on liquid staking and yield farming. We cover the topic because tokenized equities are becoming one of the largest groups of real-world assets in DeFi.

Frequently asked questions

What are tokenized stocks?

Tokens on a blockchain that track the price of a listed share or ETF. They can trade 24/7 and sit in crypto wallets. Most current products are debt securities or certificates backed by real shares, not the shares themselves.

Do you own the real share with a tokenized stock?

Usually not. xStocks are tracker certificates, and Robinhood's on-chain Stock Tokens are debt securities that grant no legal rights in the share. You own the share itself only with issuer-sponsored tokens or the DTC-based model that Nasdaq's approved rules use.

Did the SEC approve Nasdaq tokenized stock trading?

Yes. On 18 March 2026 the SEC approved Nasdaq's rule change to trade securities in tokenized form. It covers Russell 1000 stocks and major index ETFs, with tokenization handled by the DTC after T+1 settlement.

Can US investors buy tokenized stocks?

Mostly not yet. xStocks, Robinhood's Stock Tokens and Ondo Global Markets exclude the US. US investors' route is likely to be the DTC tokenization service that Nasdaq's rules rely on, which DTCC plans to launch more broadly in October 2026.

How big is the tokenized stock market?

About $3.20 billion across 7,845 tokens and 4.21 million holders as of 2 October 2026, per rwa.xyz. The largest platforms by value were Ondo, bStocks, xStocks and Securitize.

What are the main risks of tokenized stocks?

Issuer and custodian failure, weekend price gaps, thin liquidity, missing shareholder rights, regulatory changes and, when used in DeFi, smart contract and liquidation risk.

Keep reading

• Best RWA tokenization platforms in 2026
• Real-world assets (RWA) in DeFi explained
• Tokenized treasuries explained
• Tokenized real estate explained
• KYC in DeFi explained
• JewelSwap crypto glossary

This article is educational and isn't financial advice. Market figures are from rwa.xyz as of 2 October 2026. Legal structures are as described by the issuers and the cited sources on the dates given and may change; read each issuer's prospectus before buying. JewelSwap does not issue or list tokenized stocks.