Tokenization of US Stocks: A Key Moment for On-Chain Finance

Recently, the tokenization of US stocks has become a hot topic in the crypto market. This phenomenon not only reflects the market's points of interest but also represents the important challenges faced by on-chain finance.

The essence of stock tokenization is not simply issuing tokens, but rather a comprehensive test of the on-chain financial system. This process will examine whether the Web3 world has the capability to support complex operations such as the issuance, trading, pricing, and redemption of mainstream financial assets.

In fact, stock tokenization is not a new concept. As early as 2019, some trading platforms attempted similar projects but were forced to halt due to regulatory reasons. Today, this concept has regained attention, primarily because the market environment and technological conditions have become more mature.

Current stock tokenization projects are led by licensed institutions and follow a compliance route. Taking a well-known trading platform as an example, its stock tokenization service launched in Europe adopts an innovative model of "broker-dealer self-operated + on-chain issuance". The platform obtained a license in the EU, purchased actual stocks, and issued tokens that are 1:1 mapped on the blockchain. This approach covers the entire process from custody, issuance, to clearing and user interaction, providing users with an experience similar to a combination of a securities account and a crypto wallet.

The rise of this wave of stock tokenization is the result of multiple factors working together. Firstly, there have been positive changes in the regulatory environment. The European MiCA legislation has been officially implemented, and the U.S. Securities and Exchange Commission has also started to send positive signals. Secondly, on-chain funds are looking for new investment outlets. The boundaries between traditional financial markets and the crypto market are gradually becoming blurred.

For the cryptocurrency industry, stock tokenization represents two important structural changes: the migration of asset boundaries to the blockchain and the traditional financial system starting to adopt on-chain methods to organize part of the trading and custody processes. Once these changes take shape, they are likely to be irreversible.

However, the impact of stock tokenization on the crypto market is two-fold. On the positive side, it provides new allocation options for on-chain capital, helping to improve the overall asset quality of the market. At the same time, it may put pressure on native crypto projects, potentially altering the on-chain capital structure and user preferences.

For project parties, this may mean a change in the financing environment. When tokenized stocks of well-known companies appear in the on-chain asset pool, the standards for value judgment by investors and users may change.

Overall, the development of stock tokenization forces us to consider: Can Web3 truly support mainstream assets and actual trading activities? Can we build a securities system that is more efficient and transparent than traditional markets through an open financial structure? The answers to these questions will gradually reveal themselves in the future market development.