Tokenized assets don’t always mirror traditional markets, Dune finds

Dune's analysis reveals that tokenized markets exhibit distinct trading behaviors compared to traditional markets. The report highlights a $34.5 billion value in Real-World Assets (RWAs) as of Aug. 31, marking a more than 140% increase from the previous year. Cash equivalents remain the dominant segment, while equities are the most actively traded.

Trading patterns differ significantly between tokenized and traditional markets. In equities, a striking 81% of tokenized equity spot supply is concentrated in single stocks, while exchange-traded funds (ETFs) account for the remaining 19%. This stark contrast is not observed in other asset classes such as credit, commodities, and cash-equivalent products.

Armand Khatri, head of ecosystem at Ondo Finance, attributes this difference to tokenization's ability to provide investors with greater control over asset selection. By bypassing local intermediaries, investors can choose from a wider range of options, including single-company exposure or index funds.

Despite the rapid growth in the tokenized market, it still represents a minuscule fraction of the global listed-equity market. According to Binance Research data, the tokenized equity market was valued at $4.43 billion as of Sept. 15, a staggering 390% increase compared to the previous year. However, it accounts for only 0.0029% of the $151.9 trillion global listed-equity market.

While tokenization presents opportunities for investors, experts emphasize that the shift will not occur overnight. US regulators and exchanges are actively working to facilitate tokenized trading. The US Securities and Exchange Commission granted a temporary exemption for limited onchain trading of tokenized US-listed stocks on Sept.

17. Additionally, the New York Stock Exchange and Blockchain.com plan to offer tokenized US-listed stocks and ETFs through their proposed digital trading platform, pending regulatory approval.