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- Trading Stocks On-Chain: The Future of Equities (Or Just Another Crypto Experiment?)
Trading Stocks On-Chain: The Future of Equities (Or Just Another Crypto Experiment?)
Louis Jacobowski
July 02, 2025
This Week on CRYPTO ENDEVR:
We're tackling a development that's either revolutionary or overhyped: trading stocks on-chain.
Our Take: While the promise is compelling, the reality is messier than the marketing suggests. This isn't just another DeFi innovation however, it presents a fundamental challenge to how we think about ownership, regulation, and market structure. Let's separate the signal from the noise.
Prices Taken 4:28pm via CoinMarketCap
What is On-Chain Stock Trading?
Why is This Revolutionary?
The concept sounds simple: trade Apple or Tesla shares as blockchain tokens instead of through traditional exchanges. But the implications are anything but simple.
The Mechanics:
Tokenization: Real stocks become digital tokens on blockchains, representing fractional or full ownership
Smart Contract Execution: Automated trading without traditional intermediaries
Instant Settlement: No more waiting days for trades to clear
Our Opinion: This isn't just a tech upgrade, it's a paradigm shift that threatens the $100 trillion traditional equity market structure. The question isn't whether it's technically possible (it clearly is), but whether it's practically necessary.
The Promise vs. The Reality
The Bull Case: Why This Could Actually Matter
The traditional equity market is a relic. Here's why on-chain trading isn't just crypto marketing:
Cost Revolution
Traditional trades cost $5-10 per transaction plus hidden fees
On-chain platforms claim 90% cost reductions
Real Impact: For retail investors making frequent trades, this could save thousands annually
Speed That Actually Matters
Current T+3 settlement ties up capital and creates counterparty risk
Blockchain settles in seconds, not days
Example: During market volatility, instant settlement means you can react to news without waiting for previous trades to clear
True Accessibility
Buy 0.01 Amazon shares for $20 instead of needing $2,000
24/7 trading (markets never sleep in crypto)
Global access without complex international brokerage systems
Our Take: These aren't marginal improvements, they're structural advantages that could democratize equity investing.
The Bear Case: Why We're Not There Yet
But let's be honest about the obstacles:
Regulatory Uncertainty Is Real The SEC's approach to tokenized securities remains inconsistent. Coinbase's filing is promising, but regulatory approval could take years, or never come at all. Meanwhile, platforms like Nexus Labs operate in regulatory gray areas that could face sudden crackdowns.
Liquidity Is Everything
2024 tokenized stock volume: Under $1 billion
Global equity markets: Over $100 trillion
Reality Check: Low liquidity means higher spreads and more volatile pricing
The Infrastructure Isn't Ready Smart contract bugs, blockchain outages, and wallet security issues create risks that don't exist in traditional markets. When Algorand processed its 77% share of tokenized stocks in 2025, it was impressive, but also revealed dangerous centralization.
These “OpenAI tokens” are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it. Any transfer of OpenAI equity requires our approval—we did not approve any transfer.
Please be careful.
— OpenAI Newsroom (@OpenAINewsroom)
8:06 PM • Jul 2, 2025
Current Players
Who’s Building This?
Coinbase's Calculated Bet Their June 2025 announcement to launch tokenized stock trading signals mainstream validation. With 100+ million users and regulatory compliance experience, they're best positioned to bridge traditional and crypto markets.
Our Assessment: This is the most important development to note in regards to this topic. If Coinbase succeeds, expect every major crypto exchange to follow.
Decentralized Experiments Platforms like Nexus Labs and Gains Network offer no-KYC trading with up to 100x leverage. These represent the "Wild West" phase of on-chain equities.
Our Opinion: While innovative, these platforms operate in regulatory gray areas that make them unsuitable for mainstream adoption. They're valuable as proof-of-concepts, not long-term solutions.
cbAssets Have Arrived🛬
Three weeks ago, @coinbase unveiled new wrapped assets—and already, they've done more than $30M in volume on Aerodrome
Here's how cbAssets are changing the game 👇
— Aerodrome (@AerodromeFi)
7:00 PM • Jul 1, 2025
The Sui Angle
Sui's absence from the tokenized stock conversation is notable, and to us represents an opportunity.
Sui's Advantages:
120,000 TPS capacity dwarfs current tokenized stock volume needs
Object-based architecture could enable more sophisticated equity derivatives
Strong DeFi foundation provides necessary infrastructure
Our Prediction: Expect Sui-based tokenized stock platforms by late 2025 or early 2026. The technical foundation is superior to current solutions, but timing and regulatory clarity will determine success.
The Model Context Protocol (MCP) is powerful, but it's not enough.
In the age of AI agents you absolutely need a COORDINATION LAYER that makes agent-to-agent / agent-to-system interactions reliable, composable, and rule-bound.
That's @SuiNetwork.
— Adeniyi.sui (@EmanAbio)
7:26 PM • Jul 1, 2025
Market Implications
What it all Means
For Retail Investors On-chain stock trading could level the playing field by reducing costs and barriers. But it also introduces new risks around wallet security and smart contract vulnerabilities.
For Institutions Goldman Sachs and BlackRock's exploration of tokenized assets signals serious institutional interest. When traditional finance giants move, regulation typically follows.
For Crypto Markets This represents crypto's clearest path to mainstream adoption. Tokenized stocks could onboard millions of traditional investors to blockchain technology.
Our Bottom Line: The technology works, but success depends on regulatory clarity and institutional adoption, both of which remain uncertain.
Robinhood/@vladtenev likely just shifted retail investing for good
Just announced:
→ Tokenized assets
→ Pre-IPO private company stock trading
→ Their own chain, where eventually *you* basically become a bankThis is going to proliferate into every single asset class by 2026
— Rob Petrozzo (@robpetrozzo)
4:22 PM • Jun 30, 2025
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The Honest Assessment: Where We Stand
After analyzing the current landscape, here's our unfiltered take:
What's Working:
Technical infrastructure is proven and scalable
Cost and speed advantages are real and significant
Major players are making serious investments
What's Not:
Regulatory environment remains hostile in key markets
Liquidity is insufficient for mainstream adoption
User experience still requires crypto literacy
The Verdict: On-chain stock trading will happen, but probably not how current platforms envision it. Expect hybrid models that combine blockchain settlement with traditional interfaces and regulatory compliance.
On-chain stock trading represents one of crypto's most compelling use cases, real utility solving actual problems in a $100 trillion market. But the path from proof-of-concept to mainstream adoption will be measured in years, not months.
The winners will be platforms that balance innovation with regulatory compliance, technical capability with user experience. Coinbase has the best chance of cracking this code, but don't count out purpose-built blockchains like $SUI.X ( ▲ 12.42% ) to capture significant market share.
The Bottom Line: This is happening, but slowly. Position accordingly.
UNBOUND: Founders Edition
This week's Twitter Spaces featured an incredible deep dive with Davey, the gaming veteran behind Soul Seed. From his early days coding at age 7 to building what could become the "Roblox of Web3," David shared insights that every builder and gamer needs to hear. The conversation revealed why experienced developers are choosing Sui and how community-driven gaming platforms could reshape the entire industry. Catch the full spaces by clicking the picture below.
Key Moments You Can't Miss:
The Microsoft to Web3 Journey - How David transitioned from Windows 95 tech support to leading Web3 gaming innovation, including his work on major MMORPGs like Lord of the Rings Online and the pivot moment that changed everything
Why Sui Won Over a Gaming Veteran - Technical breakdown of why David chose Sui over other blockchains, including the game-changing developer experience and the weekend he built dynamic NFTs that previously took months on other chains
The Four-Pillar Gaming Economy - David's revolutionary model for sustainable Web3 gaming that benefits active players, working professionals, spectators, and investors - creating real revenue sharing instead of extraction-based game economics
Soul Seed is currently in development with community areas live and first production games launching end of July 2025. The Arcane Core NFT collection is available for minting to support development and gain platform utility. Learn more at soulseed.io
Crypto Endevr is always on the lookout for the latest news and trends in the world of blockchain technology, but it’s not possible without you. Thank you for your support. We look forward to navigating the crypto landscape together in 2025 and beyond!
This article is for informational purposes only and does not constitute financial advice. All investment decisions should be made based on your own research and risk tolerance.
