Tokenized equities reach $2.7 billion as traditional banks integrate digital assets
The rapid expansion of tokenized equities and traditional bank integrations highlights the sector's institutional maturation amid tightening global regulatory scrutiny.
The market for tokenized equities has expanded dramatically, with total tracked value surging from roughly $80 million a year ago to approximately $2.7 billion today. Binance’s bStocks recently overtook xStocks to become the second-largest issuer in the sector, reaching about $624 million on August 3. It now trails only Ondo Finance, which holds roughly $927 million in value.
This growth signals a structural shift in how digital assets are distributed, moving beyond retail speculation into regulated financial infrastructure. Traditional financial institutions are increasingly building the rails for this expansion, integrating digital asset trading directly into legacy banking platforms.
Israel’s Bank Leumi partnered with Galaxy Digital to offer Bitcoin, Ether, and Solana trading through its investment platform starting in early 2027. In Japan, four MUFG companies are testing the Canton Network to bring Japanese government bond repo transactions onchain for continuous settlement. Meanwhile, South Korea’s Shinhan Asset Management is working with Plume to pilot a won-denominated tokenized fund for onchain markets.
As institutional adoption accelerates, regulators are formalizing oversight frameworks to capture tax revenues and protect consumers. Singapore finalized regulations requiring crypto firms to report user transactions to the tax department, implementing the OECD’s Crypto-Asset Reporting Framework by the end of 2027. In Hong Kong, HashKey began the beta distribution of HKDAP, the territory’s first regulated dollar-backed stablecoin, focusing initially on institutional access.
However, the sector continues to face severe operational and governance challenges. The official X account for BitMart publicly demanded that founder Sheldon Xia explain the status of user funds and unpaid employee salaries. The account threatened to submit evidence to regulators if a verifiable asset disclosure and repayment plan were not provided.
Xia dismissed the demands, calling the allegations "fabricated rumors" and promising to file a police report to demand technical forensics. In corporate treasury news, Metaplanet CEO Simon Gerovich denied selling Bitcoin following a $322 million transfer, describing it as a routine custody operation that leaves the firm's holdings at 43,000 BTC.
Legal disputes also persist as the industry matures. Binance and RedotPay are contesting the status of Singapore proceedings related to a nearly $473 million Hong Kong legal battle over alleged unauthorized stablecoin card top-ups. RedotPay expects Binance to drop the case and seek legal costs, while Binance maintains it is not abandoning its claims.
