Article originally published in November 2020, updated in 2026 to reflect the arrival of tokenized stocks at Robinhood and other major exchanges, along with the SEC's new position.
Today I want to talk to you about one of the most exciting crypto innovations out there: security tokens, also known as tokenized stocks. After the wave of decentralized finance (DeFi), it's now the turn of real-world asset tokenization to shake up the world of digital investing and pave the way for mass crypto adoption.
What was merely an emerging concept in 2020 has become a mainstream reality in 2025-2026: today you can buy a fraction of a tokenized Apple or Tesla share, 24/7, directly on-chain. Let's take stock.
What is a security token?
Let's start with a clear definition: a security token represents a fraction of a real-world asset — a publicly listed stock, a piece of real estate, a work of art, or any other high-value good. In practice, security tokens let you invest a small amount in an asset that would normally be out of reach. Want to invest in Alphabet (Google) or Apple, but the price of a full share is beyond your budget? Security tokens give you a low-cost way in.
In a way, they dramatically expand what crowdfunding can do and democratize access to traditional financial markets. Where a conventional share settles on business days and within stock-exchange hours, a token backed by that share lives on the blockchain: infinitely divisible, tradable around the clock, and transferable from wallet to wallet.
Security Tokens: The Key Advantages for Investors and Businesses
Traditional stock-exchange listings and conventional fundraising are often an uphill battle for anyone trying to build an ambitious project.
Strict regulatory constraints, rigorous bookkeeping, compliance with stock-market regulations, collateral required for a standard bank loan: so many obstacles that can hold a project back through a simple lack of financial or human resources.
In contrast to these heavy constraints, security tokens offer remarkable flexibility and unbeatable implementation costs thanks to blockchain technology. What's more, the low entry ticket for investors reflects a genuine democratization of investing in indices and securities that were initially very expensive. Valuation is then set by a much broader pool of investors, rather than by a small circle of players with the financial and material means — often hand-picked.
The Concrete Benefits of Tokenization
- Fractional ownership: you buy 0.01 of a share worth several thousand dollars.
- 24/7 availability: no exchange hours, no public holidays — the on-chain market never closes.
- Near-instant settlement: the blockchain replaces traditional clearing delays.
- Global access: an investor outside the United States can gain exposure to U.S. stocks without a local broker.
- Lower costs: fewer intermediaries, so fewer fees.
In short, security tokens open up an endless field of possibilities and investment opportunities. This is no longer a purely theoretical concept, but a tangible reality that is already rolling out on several regulated trading platforms like OKX, which offers a suitable environment for exploring these new tokenized assets.
Where Do We Stand in 2026? Adoption Has Taken Off
Back in 2020, I was speculating about what might happen “within 20 years.” Five years on, the movement has accelerated dramatically:
- A major player in the sector launched its xStocks tokenized-stock offering (in partnership with Backed Finance) starting in June 2025. The lineup has grown past a hundred tokenized U.S. stocks and billions of dollars in cumulative volume. It even acquired its partner Backed Finance in late 2025 to bring the tokenization layer in-house.
- Robinhood rolled out more than 200 tokenized stocks and ETFs in late June 2025 for users in the European Union / EEA.
- The total market cap of tokenized stocks jumped from less than $30 million in early 2025 to more than $700 million by the end of 2025 — spectacular growth in under a year.
In other words, what I described as a distant promise has become a product you can use right now. And since these tokenized assets often trade through derivatives and futures contracts, understanding how they work becomes a real edge for anyone looking to gain exposure intelligently.
What the SEC Thought… and What It Says Today
When this article was first written, Jay Clayton — then chairman of the SEC (Securities and Exchange Commission) from 2017 to 2020 — publicly voiced his belief in the enormous potential of blockchain technologies. He even went further, stating that every stock could eventually be tokenized.
Clayton left the SEC in late December 2020. Yet his most illuminating statement remains relevant today: “If you're not funding the network, if you're not trying to generate a return, it's not really a security. On the other hand, if you're doing finance and you're providing a return for the use of the network through your token, then it looks a lot like what we know on the derivatives market. That process is well established, and it becomes clear that it's a derivative like any other.”
For comparison, keep in mind that today all financial transactions are strictly governed by electronic processes. That wasn't the norm 20 years ago. So why wouldn't they all eventually be tokenized, given that technological development follows exponential rather than linear growth?
The Regulatory Framework Is Taking Shape (2024-2026)
The regulatory vacuum that existed in 2020 is gradually being filled:
- SEC: under the chairmanship of Paul Atkins (in office since April 2025), the SEC published its most comprehensive guidance in early 2026 on how federal laws apply to tokenized assets, and opened a “tokenization sandbox” to test these products within a supervised framework.
- DTCC: the U.S. central securities depository secured SEC approval in late 2025 to pilot a tokenization service over three years (indices, major ETFs, Treasury bonds).
- Spot ETFs: spot Bitcoin ETFs (January 2024) and then spot Ethereum ETFs (July 2024) were approved and listed in the United States — proof that traditional finance has widely embraced digital assets.
- Europe: the MiCA regulation has been fully applicable since late 2024 and provides a clear framework for crypto-assets in the European Union.
This kind of progress, combined with Wall Street's now very real interest in the crypto market, confirms the sector's growing maturity and the place of digital assets in modern portfolios.
How to Invest in Tokenized Stocks
If you want exposure to these assets, two approaches coexist: going through a regulated platform like OKX that handles compliance for you, or holding your tokens directly on-chain. In the latter case, you'll need a crypto wallet: to get off to a good start, first create your wallet with MetaMask so you can store and move your assets fully on your own.
Above all, don't skip the essential step of risk management: these innovative assets remain volatile, and the first rule is still to protect your capital. If you're new to crypto investing, I recommend solidifying your foundations with our guides on the basics of trading before diving into this type of instrument.
FAQ — Security Tokens & Tokenized Stocks
What is a security token?
It's a blockchain token that represents a fraction of a real-world asset: a stock, a property deed, a work of art… It lets you invest a small amount in an asset normally reserved for big portfolios, and trade it around the clock.
What's the difference between a security token and a regular cryptocurrency?
A cryptocurrency like Bitcoin isn't backed by any underlying asset. A security token, by contrast, derives its value from a real-world asset (often a stock) and is generally subject to securities regulations.
Where can you buy tokenized stocks in 2026?
The main consumer offerings are xStocks (100+ tokenized U.S. stocks) and Robinhood's tokenized-stock lineup for the European Union / EEA (200+ securities). Always check availability in your country and the applicable regulatory framework.
Are tokenized stocks risky?
Like any crypto asset, they carry risks (volatility, issuer counterparty risk, variable liquidity). Hence the importance of strict risk management and never investing more than you can afford to lose.
Happy trading!
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