Will stock tokens replace traditional stock trading? An in-depth trend analysis

When the New York Stock Exchange is closed for holidays, you can still buy and sell Apple and Nvidia stocks on the blockchain. This is not science fiction but a financial reality happening in early 2026. As trading platforms like Gate launch dedicated stock token sections, a key question arises: Will stock tokens replace traditional stock trading?

What Are Stock Tokens? More Than Just Price Mapping

To answer this, we first need to clarify the concept. The core of stock tokens is not to give users direct ownership of actual stocks but to use blockchain technology to map the price performance of traditional financial assets (like U.S. stocks) into tradable digital assets.

On platforms like Gate, these tokens are essentially price-tracking products. Their value mainly reflects the market trends of the underlying stocks (such as Tesla or Nvidia), but they do not grant holders shareholder rights, dividends, or voting rights. This means stock tokens are more like market participation tools rather than traditional investment assets.

According to the latest guidelines issued by the U.S. Securities and Exchange Commission (SEC) in January 2026, these assets are explicitly classified as “tokenized securities.” The SEC states that whether securities are recorded on-chain or off-chain, the applicability of federal securities laws remains unchanged. This provides a crucial compliance framework for the industry.

Market Boom: Tracking Capital Flows from On-Chain Data

Market data reveals a strong momentum for this trend. During the Christmas holiday of 2025, despite the traditional U.S. stock markets being closed, nearly $1 billion worth of Apple, Tesla, and Nvidia stocks were traded on the blockchain. Currently, the monthly trading volume of tokenized public stocks has exceeded $800 million, with some months reaching peaks of $1 billion.

More importantly, this growth is driven by institutional funds. In early 2025, institutional investors accounted for only 39.4% of the market, but by the end of the year, that proportion had surged to 82%. This indicates that Wall Street is quietly shifting its focus, moving funds onto the blockchain.

In terms of market size, the growth curve of tokenized assets is extremely steep. The total market capitalization of stock tokens has surpassed $1 billion, increasing more than 50-fold over the past year. Boston Consulting Group (BCG) predicts that the global asset tokenization market will grow from approximately $0.31 trillion in 2022 to $16 trillion by 2030. Several industry executives expect the market size of tokenized assets to reach around $400 billion by 2026.

Practical Examples from Platforms like Gate: Revolutionizing Trading Experience

The emergence of Gate’s stock token section has significantly lowered the barrier to participation. Users no longer need to open separate securities accounts or handle cross-border remittances; they can simply trade Apple, Tesla, and other stock tokens 24/7 in real-time through their Gate accounts, just like trading cryptocurrencies.

This model addresses several core pain points of traditional stock trading:

• Trading hours: Traditional stock markets have fixed opening and closing times, while stock tokens support round-the-clock trading.
• Settlement cycles: Conventional markets use T+1 or T+2 settlement, whereas on-chain transactions can settle almost instantly, greatly improving capital efficiency.
• Entry barriers and fragmentation: Users can adjust their trading scale freely based on their funds, without being limited to whole shares.

Other major exchanges are also accelerating their efforts in this space. Kraken recently launched regulated perpetual contracts for tokenized stocks for non-U.S. users, supporting up to 20x leverage. Binance has introduced tokenized stocks, funds, and commodities—including AAPL on, NVDA on—on its Binance Alpha platform. Coinbase has also launched commission-free stock and ETF trading for U.S. users. These developments further confirm the strong market demand for such products.

Replace or Coexist? Key Differences and Boundaries

Despite the rapid growth, stock tokens are unlikely to fully replace traditional stock trading in the short term due to fundamental differences.

Lack of Rights

As mentioned earlier, Gate’s stock tokens do not grant voting rights or dividends. For long-term investors seeking shareholder value and corporate governance, traditional stocks remain irreplaceable. Holding Coinbase shares allows you to share in profits and participate in voting, whereas holding its tokens only provides price exposure.

Regulation and Compliance

Although the SEC has issued relevant guidelines, the global regulatory environment for tokenized securities is still in its early stages. Different countries have varying definitions and regulations for these assets, which limits their large-scale adoption.

Divergent Valuation Logic

Recent analyses show significant differences in valuation logic between stocks and tokens. Tokens tend to exhibit greater short-term volatility, with peaks often occurring within less than 30 days; stocks, on the other hand, tend to maintain steady growth over longer periods. Over 80% of tokens issued in 2025 are priced below their TGE (Token Generation Event) prices, indicating market concerns about the sustainability of high token valuations. In contrast, traditional stocks benefit from institutional access and inclusion in indices, which provide valuation premiums.

Future Outlook: Towards a Unified Asset Market

So, what does the future hold? The ultimate form is likely not “replacement” but integration and layering.

We can envision a unified asset market where stocks, bonds, commodities, and other assets exist as digital tokens within the same infrastructure. The boundaries between asset classes will become blurred. For users seeking trading efficiency, 24/7 liquidity, and cross-border flexibility, stock tokens will become the preferred tool. For those focused on ownership, governance rights, and long-term value investing, traditional stocks will remain essential.

The Gate stock token section symbolizes the transformation of crypto trading platforms toward a multi-asset financial ecosystem. It offers a low-threshold, highly flexible way to participate in global financial markets, serving more as a supplement to the existing system rather than a complete overhaul.

Conclusion

Returning to the initial question: Will stock tokens replace traditional stock trading? The answer is no. They will not replace but rather reshape and expand the boundaries of trading.

Stock tokens enable users worldwide to participate in stock market price movements within a crypto environment. They are better suited as supplementary assets for trading, market observation, short-term operations, or multi-market strategies. With a clear understanding of their properties and risks, traders on platforms like Gate are opening a new path into traditional financial markets. The core of this transformation is not a binary choice but coexistence—together building a more inclusive and efficient global financial future.