You open a brokerage account, wait for market hours, settle a business day later, and accept that your broker is the custodian of record. That’s how equity markets had been working for decades, until tokenized stocks arrived on the scene. 

A tokenized stock is a blockchain-based token that represents ownership in a publicly traded company. Each token is backed 1:1 by the underlying share, held in custody by a regulated custodian, and can be traded 24 hours a day, seven days a week — weekends included. The same corporate rights attach: dividends, voting rights, and economic exposure move with the token. What changes is the infrastructure underneath. 

And in March 2026, the US SEC approved Nasdaq’s plan to allow eligible securities to trade in tokenized form for the first time in the history of a major US equity exchange. This decision turned the concept of tokenized stocks from a thought experiment into an endorsed market structure, accessible globally.

Against that backdrop, let’s discuss what tokenized stocks are, how they trade, what the Nasdaq approval actually changes (and what it doesn’t), how the live platforms compare, why moving tokenized equity across chains is the access problem facing this sector, and how it’s being solved with LI.FI’s intents-based architecture. 

Key Takeaways

• A tokenized stock is a blockchain token backed 1:1 by a real share, held by a regulated custodian. It carries the same dividend and voting rights, but can be traded 24x7, with token transfers settling in seconds rather than the next business day. 

• On March 18, 2026, the SEC cleared Nasdaq to trade tokenized securities, including Russell 1000 stocks and major index ETFs, paving the way for US citizens to access tokenized equities. Meanwhile, the DTC’s pilot aims to enable token-settled trades by late Q3 2026. 

• Two different models share the ‘tokenized stock’ label: offchain-issuer products (xStocks, Ondo, Backed) that are live today for non-US users, and the exchange-level model Nasdaq just had approved for US market structure. 

• The live platforms have scaled fast — xStocks (100+ tokenized stocks and ETFs), Ondo Global Markets (430+), Robinhood’s EU stock tokens (2,000+) — but none are open to US retail in the conventional tokenized format yet. 

• Most existing tokenized stocks exist on multiple chains, causing liquidity and market fragmentation. LI.FI’s intents-based architecture solves this problem, offering a seamless execution path with built-in compliance and customizability for regulated issuers.

What are tokenized stocks?

A tokenized stock is a digital representation of a real share, issued on a blockchain. The issuer holds the underlying security with a regulated custodian and mints a corresponding token. When you hold the token, you hold a claim to that share, with the same economic and voting rights as a traditional shareholder.

That said, tokenized equities introduce various novel capabilities and benefits over their legacy counterparts. For instance, fractional ownership is native onchain, so one Apple or Amazon share can be split into any denomination. With $200, you can buy exposure to a stock trading at $1,800. And you can do this around the clock, independently of exchange opening hours, with near-instant settlement on certain products.

It’s worth noting, however, that tokenized stocks differ from stock CFDs (contracts for difference), which are purely synthetic derivatives with no backing security. CFDs give you price exposure but no claim on an actual share. Tokenized stocks give you a real claim, held by a custodian and verifiable through the token’s smart contract. They also differ from traditional exchange-traded funds, though tokenized ETFs exist alongside tokenized individual equities and run on the same mechanics.

For a broader understanding of tokenized assets, their categories, the buying process, and the infrastructure enabling them, read Real-World Assets (RWAs) in crypto.

How tokenized stock trading works

An issuer — Backed Finance or Ondo, for example — acquires the underlying security through a licensed broker and places it with a regulated custodian, typically a prime broker or trust company. It then mints a corresponding number of tokens on a blockchain, each representing one share or a fractional denomination. 

To buy a tokenized stock, you typically transfer stablecoins (such as USDC) to the issuer or exchange. They either transfer an existing token from their pool or mint a new one against a freshly purchased share. Likewise, the process reverses when you sell: the token is burned, the share is sold, and the proceeds are returned to you in stablecoins. 

You get fast settlement on the token side, without depending on the legacy NSCC/DTC rails that process conventional equity trades on a T+1 basis. This compresses the UX from days to a few seconds, although the custody leg still relies on traditional securities infrastructure.

Corporate actions, such as dividends, stock splits, and spin-offs, are handled by the custodian and reflected in token balances or distributions. The specifics vary by issuer, but the token tracks the payouts and entitlements of the underlying share. The same mechanics apply more broadly to fund tokenization, where a mutual fund, ETF, or MMF share is the asset represented onchain.

What Nasdaq’s SEC-approved tokenized trading means

On March 18, 2026, the SEC approved a rule change filed by Nasdaq (SR-NASDAQ-2025-072), permitting eligible securities to trade in tokenized form. 

It’s the first time a major US equity exchange has won such a clearance, largely because it has a specific scope. 

Eligible securities are limited to vetted stocks from the Russell 1000 Index and ETFs that track major indices, such as the S&P 500 and Nasdaq-100. Tokenized shares trade on the same order book as conventional shares, carry the same ticker and CUSIP, and execute at the same price. A buyer and seller can sit on opposite sides of the same trade without knowing whether the other settles conventionally or takes the tokenized path.

The approval, however, doesn’t move settlement onchain, as it’s widely misunderstood. 

Trades still clear conventionally on a T+1 basis through NSCC/DTC, exactly as they do today. Tokenization happens as a post-trade step. Once DTC records the conventional entitlement, it issues a token representing that position onchain. No clearinghouse infrastructure changes, and the token layer sits on top of the existing back office.

This means US-regulated tokenized stock exposure now has a path inside US market structure. Institutional participants can thus hold tokenized equity positions that are legally equivalent to conventional share ownership. The Nasdaq variant of tokenized stocks (distinct from the issuer-led form discussed above, which offers real-time token settlement) might get programmable corporate actions in the future, fully tapping into the upsides of tokenization. But for now, at least the core legal foundation is in place.

The shift is more immediate for infrastructure providers, though. 

Tokenized equities at Nasdaq scale create demand for compliant cross-chain routing: stock tokens for US equities will live on multiple chains, and reaching them from any starting position requires an efficient routing layer that respects transfer restrictions and jurisdictional rules before value moves.

The DTC’s tokenization pilot is framing the rollout for such infrastructure. Participant onboarding and system updates are expected to complete in the second half of 2026, with the first token-settled trades possible by the end of Q3 2026. How this settlement layer comes along will shape the eventual state of interop for 2026 and beyond.

Platform comparison — Where to trade tokenized stocks

Several platforms already offer tokenized stocks today, ahead of Nasdaq’s US rollout. Here’s how the main ones compare on what actually matters: listing, asset location, accessibility, and settlement.

xStocks leads retail trading, with $25+ billion in total transaction volume in under eight months since launch. It also has the most unique holders of any tokenized-equity platform. Ondo, by contrast, leads the market in assets under management and asset count, with 430+ tokens across chains (up from 200 at launch in January, 2026). Robinhood also offers tokenized stocks exclusively to EU/EEA users, issued on Arbitrum, with its custom Arbitrum L2, Robinhood Chain, in public testnet.

But none of these platforms are open to US retail investors in the conventional tokenized format. Nasdaq’s approved mechanism changes that, opening a US-native path for tokenized trading (if not onchain settlement).

Accessing tokenized equities across chains

Jurisdictional barriers aside, tokenized equities are also fragmented across chains. 

xStocks, for example, spans Solana, Ethereum, TON, and Ink. Ondo Global Markets covers Ethereum, BNB Chain, and Solana. Robinhood EU issues on Arbitrum. Backed’s tokens reach a still-wider set of EVM networks. Meaning, the same company’s stock, once tokenized, can exist on half a dozen chains simultaneously.

That’s a real problem for anyone holding assets on one chain and wants a stock token on another. Moving capital from Ethereum to Solana to buy an Ondo-issued token, then back to Ethereum to post it as collateral on a lending protocol, involves multiple bridges and transactions, incurring compounding gas costs. Unless the underlying routing layer collapses them into a single step.

LI.FI provides this routing layer, connecting 60+ chains, aggregating 29 bridges and 35 DEXs, and exposing a single API for tokenized real-world assets. From onchain treasuries and equities to gold and the broader RWA universe, you can access everything via one integration, rather than one per issuer. 

With LI.FI Intents, a competitive solver network, facilitates this accessibility, letting tokenized equity issuers or integrators get the job done by simply expressing their intent — deliver this stock from this chain to that wallet. LI.FI’s solvers compete to fill it, fronting destination-chain liquidity and getting reimbursed from locked source funds once settlement is verified.

Compliance is built into this execution path, with wallet-level OFAC screening and a KYB-verified solver network, among other features. Integrators also gain granular control over which solvers fulfill their intents, allowing regulated issuers to decide which counterparties they want to interact with. Such configurable controls are critical for securities-grade tokens, especially as they come onchain at Nasdaq scale. 

Last but not least, tokenized stocks introduce a new collateral class, with new implications for DeFi composability. 

Posting a tokenized Apple or NVIDIA share as collateral in a lending market like Aave or Morpho, or feeding it into a cross-chain yield strategy, will depend on settlement mechanics that match the atomicity of the underlying blockchain transactions. 

LI.FI Composer is designed to facilitate such moves cost-efficiently by bundling the bridge, swap, and deposit into a single signed transaction, so that stock exposure on one chain can reach a strategy on another in one step. Thus overall, if there’s a stock onchain and you want to get it, LI.FI will help you get there smoothly — without worrying about liquidity or market access. Express your intent, and that’s all. 

Frequently Asked Questions (FAQs)

Are tokenized stocks real shares?

Yes. Each tokenized stock token is backed 1:1 by a real share of the underlying company, held by a regulated custodian. You hold a legal claim to that share — including dividend and voting rights — through the token, not a synthetic derivative that tracks its price.

Can you trade tokenized stocks 24x7?

Yes, on platforms that support secondary trading, such as xStocks and Ondo Global Markets. Token trading is continuous, including weekends and outside traditional market hours. The underlying share doesn’t trade in those windows, but the token can still change hands freely.

Is Nasdaq tokenized trading SEC-approved?

Yes. The SEC approved Nasdaq’s rule change on March 18, 2026 (SR-NASDAQ-2025-072), permitting eligible securities — including Russell 1000 constituents and major index ETFs — to be traded in tokenized form. Settlement still runs conventionally through DTC on a T+1 basis, with tokenization added as a post-trade step. The first token-settled trades are expected by the end of Q3 2026.

Can US investors buy tokenized stocks?

Not yet, in most cases. The live offshore platforms — xStocks, Ondo Global Markets, Robinhood’s EU tokens, and Backed — exclude US persons or restrict access to non-US or institutional investors. Nasdaq’s approved framework is the first route designed for US market structure, but it’s still working through the DTC pilot’s rollout phase.

What platforms offer tokenized stocks?

As of mid-2026, the main ones are xStocks (Kraken and Backed Finance, on Solana, Ethereum, TON, and Ink), Ondo Global Markets (Ethereum, BNB Chain, and Solana), Robinhood’s EU stock tokens (Arbitrum), and Backed Finance (across several EVM chains). Availability varies by jurisdiction, and most exclude US retail outside the forthcoming Nasdaq framework.

Try it!

Tokenized stocks have moved from pilot to endorsed market structure. Platforms have processed tens of billions in trading volume. The SEC has approved Nasdaq’s tokenized stock trading model for US citizens. 

But competing stock token ecosystems now span a dozen chains. Accessibility is thus a key question now, besides the tokenized equities’ rollout timeline. And given the clear institutional demand, compliant infrastructure is mission-critical to ensure smooth operations and optimal scalability from day one. 

With its intents-based architecture and products like LI.FI Composer, LI.FI provides the routing layer necessary to bring and execute tokenized equities onchain, at scale, without compromising on security or compliance. That too, with minimal implementation hurdles and maximum customizability, serving retail and institutional interests alike. 

Ready to start building? Check out our documentation or reach out to our team to scope the cross-chain routing your tokenized-equity product needs.