The Rise of Tokenized Stocks: How Crypto Brokers Are Redefining Retail Trading

04-Jul-2025

We’re entering a new era of investing — one where the line between crypto and traditional finance is quickly disappearing. Tokenized U.S. stocks and ETFs are no longer theoretical. They’re here, and platforms like Robinhood, Kraken, and Bybit are leading the charge.

This shift isn’t just innovation — it’s a transformation. And the implications for retail traders, especially Gen Z and millennials, are profound.

The market is no longer crypto or stocks.
It’s crypto and stocks — unified, liquid, and programmable.

Retail Brokers Go Hybrid

Robinhood, once known strictly for stocks, is making bold moves in Europe by launching tokenized U.S. equities and ETFs on its own Layer‑2 blockchain. These assets trade 24/5, with zero commissions and self-custody — features that speak directly to crypto-native users.

Their 2024 profitability tells the story: crypto volume was a major driver, proving the value of a hybrid platform that merges equities with digital assets. This blend resonates deeply with a new generation of investors who want speed, access, and control.

Stock Tokens Scale on DeFi

Meanwhile, Kraken, Bybit, and Solana-native protocols are building ecosystems around xStocks — a new breed of tokenized equities. These platforms offer access to 60+ U.S. stocks, including Apple, Tesla, and Nvidia, with full DeFi integration.

Backed by Chainlink oracles, these tokens can be used as on-chain collateral, staked, or traded around the clock. Ave.ai’s on-chain tracking tools already monitor these hybrid flows, revealing how capital rotates between meme coins, DeFi, and tokenized stocks — often driven by narrative spikes or macro catalysts.

Innovation at the Infrastructure Level

Robinhood’s rollout also highlights a second innovation frontier: fiat on-ramps combined with Layer‑2 speed. Users can trade tokenized stocks and settle with fiat — without touching a CEX. That’s huge for accessibility.

Solana-based projects like Backed Finance push this further. Their tokenized equities offer ultra-low fees, instant settlement, and a path toward truly global access — especially in emerging markets where traditional brokerage services are limited or inaccessible.

Broader Impacts on the Market

These changes don’t just serve traders — they redefine how assets are held, traded, and utilized. And platforms like Ave.ai are already providing real-time visibility into this shift, analyzing wallet flows, token volumes, and sentiment signals across hybrid asset classes.

Real‑World Rollouts

  • Robinhood EU: Offers 200+ U.S. equities with zero commission and native dividend support — all built on its proprietary Layer‑2.
  • Kraken xStocks: Brings tokenized Apple, Tesla, and more to Solana users — supporting 24/5 trading with global reach.

All three examples point to one truth: the stock market is being rebuilt with DeFi’s DNA.

The Future: Unified Trading, Everywhere

What can we expect next?

  • Unified Hybrid Apps — Platforms will offer crypto and stocks under one roof, with smart wallets and programmable accounts.
  • Tokenized Everything — From real estate to futures, every asset class is in line for tokenization.
  • Regulatory Maturity — As adoption grows, expect more clarity on compliance, custody, and taxation.

And in the middle of it all? Smart on-chain tools like Ave.ai, helping traders spot early flows, narrative spikes, and alpha across the entire financial stack.

Final Take

Merging crypto and equities isn’t just a feature — it’s a paradigm shift.

The ability to trade stocks 24/5, hold them in your wallet, and use them as collateral opens up a world of new strategies. Platforms like Robinhood and Kraken are setting the pace, but the real edge lies in on-chain insights.

Whether you’re a meme coin degen or a stock market strategist, tools like Ave.ai help you make sense of this hybrid future — tracking smart flows, identifying breakout trends, and empowering smarter, faster trades.

Ready to elevate your trading experience? Try Ave AI now:

Ave.ai - The Ultimate Web3 Trading Platform

Disclaimer: This blog post is for informational purposes only and does not constitute financial advice. Cryptocurrency trading involves significant risk. Always conduct your own research before making any investment decisions.

The Rise of Tokenized Stocks: How Crypto Brokers Are Redefining Retail Trading was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

WHAT'S YOUR OPINION?
Related News