MEXC Adds 17 Tokenized Stock Pairs Via Ondo Finance

What Are Tokenized Stocks and How Do They Work

tokenized stocks represent ownership positions in traditional equities converted into digital tokens on a blockchain. Each token corresponds to a underlying share of a company, enabling investors to hold and trade equity exposure through cryptocurrency infrastructure rather than conventional brokerage systems.

The mechanism operates by issuing blockchain-based tokens that are backed by actual shares held in custody by a regulated financial institution. When an investor purchases a tokenized stock, the transaction is recorded on the blockchain while the corresponding shares remain held in custody by a regulated custodian. This structure allows for near-instant settlement compared to the traditional T+2 settlement cycle in equity markets.

People want equity exposure, cleaner execution, and access outside the 9:30 a.m. to 4:00 p.m. Eastern standard trading window, according to market analysis. Tokenized stocks also allow for better market surveillance and risk monitoring, both of which are very important for institutions. With blockchain-enabled asset tokenization influencing transaction efficiency, value creation, and risk distribution across different market participants, the technology addresses several structural inefficiencies in traditional securities markets.

However, regulatory and cyber risks remain higher than with traditional assets, requiring investors to understand that tokenized securities operate in a complex compliance landscape that varies by jurisdiction. The purported benefits include quicker, more cost-effective transfer of ownership and enhanced ability to use assets as collateral, but these come with corresponding challenges that market participants must carefully evaluate.

Real Adoption Metrics: Volume, Holders, and Institutional Commitments

Measuring adoption of tokenized stocks requires looking beyond total value locked metrics to focus on unique holders, repeat trading activity, and institutional commitments. According to X-stocks data, tokenized stocks have generated meaningful demand with $4.7 billion in volume on centralized exchanges and 36,000 unique holders since July, demonstrating measurable market engagement rather than speculative hype.

Institutional involvement shows significant momentum. According to Broadridge research, custodians lead adoption with 63% offering tokenized assets, citing efficiency, security, and innovation as key drivers. Germán Soto Sanchez, Chief Product and Strategy Officer at Broadridge, stated that institutions that commit to trusted client experiences, strong governance, and scalable infrastructure for tokenization can lead a transformation that will redefine global markets.

The exchange infrastructure has expanded notably. MEXC and ondo finance have launched 17 new tokenized stock pairs providing 40 million users with access to U.S. equities, representing a substantial expansion of retail access to American stock markets through cryptocurrency platforms. This partnership demonstrates how crypto-native exchanges are bridging traditional equity markets with blockchain technology.

Looking ahead, State Street research indicates nearly 60% of polled institutional investors plan to increase tokenized asset allocations, expecting up to 25% of investments via tokenized instruments by 2030. Joerg Ambrosius, President of Investment Services at State Street, described institutions moving beyond experimentation with digital assets as a strategic lever for growth, marking a clear shift from theoretical exploration to practical implementation.

McKinsey projects tokenized market capitalization reaching $2 trillion by 2030, driven primarily by bonds, funds, and loans, with slower adoption for equities due to feasibility and liquidity considerations. This suggests tokenized equities will follow bond and fund tokenization rather than lead it, as regulatory and market structure challenges prove more complex for equity products.

Institutional Infrastructure Driving Tokenized Securities Forward

The institutional backbone supporting tokenized securities extends beyond custodians to include major financial infrastructure providers preparing for scaled adoption. State Street, one of the world’s largest custodians with trillions in assets under administration, has positioned digital asset services as a strategic growth priority, recognizing that client demand is shifting toward tokenized products.

Broadridge Financial Solutions has emerged as a key infrastructure provider, processing securities transactions for hundreds of financial institutions globally. The company’s research indicates that custodians are leading the adoption curve, with nearly two-thirds already offering tokenized asset capabilities to clients. This positions custodians as the primary interface between traditional finance and blockchain-based securities.

The regulatory landscape continues to evolve. SIFMA supports regulatory modernization for tokenized securities equivalent to traditional ones, stressing investor protections and clarity from SEC and Congress. SEC Commissioner Peirce has highlighted tokenization’s potential for capital formation and collateral use, suggesting a constructive regulatory stance toward the technology.

McKinsey analysis suggests adoption waves prioritize assets with high friction and low regulatory hurdles first, meaning tokenized bonds and funds will likely scale before equities achieve mass adoption. This creates a realistic adoption trajectory where different asset classes reach maturity at different rates based on their specific regulatory and structural challenges.

Blockchain technology can bring increased security and transparency to tokenized assets, with blockchains’ decentralized nature providing resistance to certain types of manipulation. However, the technology also requires robust cybersecurity protocols as the digital nature of tokens creates new attack surfaces that market participants must address.

Key Takeaways for Understanding Tokenized Stock Adoption

Tokenized stocks represent a meaningful innovation in securities infrastructure, offering potential benefits including faster settlement, enhanced surveillance capabilities, and extended trading hours. However, adoption metrics should be measured through unique holders, trading volume, and institutional commitments rather than total value locked figures.

Institutional infrastructure is substantially more prepared than market participants might expect, with 63% of custodians already offering tokenized assets and major providers like State Street and Broadridge positioning for scaled adoption. Nearly 60% of institutional investors plan to increase allocations to tokenized assets, with expectations of up to 25% through tokenized instruments by 2030.

Regulatory clarity remains essential for continued adoption. The regulatory framework continues to develop, with SIFMA advocating for modernized regulations that provide equivalent protections to traditional securities while the SEC has acknowledged tokenization’s potential benefits for capital formation. Investors should understand that regulatory and cyber risks remain higher than with traditional assets.

McKinsey projections of $2 trillion in tokenized market capitalization by 2030 suggest substantial growth, but equity tokenization will likely trail bond and fund tokenization due to feasibility and liquidity challenges. The realistic adoption trajectory involves different asset classes reaching maturity at different rates based on their specific regulatory and market structure considerations.