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

Imagine a scenario in 2026 where the New York Stock Exchange is closed for holidays, but you can still buy and sell Apple and Nvidia stocks on the blockchain. This isn’t science fiction; it’s the emerging financial landscape. 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 isn’t to give users direct ownership of actual stocks but to use blockchain technology to map the price performance of traditional financial assets (like US stocks) into tradable digital assets.

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

According to the latest guidance 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 Surge: Insights from On-Chain Data on Capital Flows

Market data reveals strong momentum behind this trend. During the Christmas holiday of 2025, despite the traditional US 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 capital. In early 2025, institutional investors accounted for only 39.4% of the market, but by the end of the year, that figure had surged to 82%. This indicates that Wall Street is quietly repositioning, shifting funds onto the blockchain.

Practical Examples from Platforms like Gate: Revolutionizing Trading Experience

The emergence of stock token sections on platforms like Gate significantly lowers the barrier to participation. Users don’t need to open separate brokerage accounts or handle cross-border transfers; they can trade Apple, Tesla, and other stock tokens 24/7 through their Gate accounts, just like trading cryptocurrencies.

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

• Trading hours: Traditional 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 trades can settle almost instantly, greatly improving capital efficiency.
• Accessibility and fragmentation: Users can adjust trading sizes freely based on their funds, without being limited to whole shares.

For example, Kraken recently launched regulated perpetual contracts for tokenized stocks accessible to non-U.S. users, with leverage up to 20x, further demonstrating market demand for such products.

Replace or Coexist? Key Differences and Boundaries

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

1. Lack of Rights

As mentioned, Gate stock tokens do not confer voting rights or dividends. For long-term investors seeking shareholder value and corporate governance, traditional stocks remain irreplaceable. Holding Coinbase shares means sharing in profits and voting rights, whereas holding its tokens only provides price exposure.

2. Regulation and Compliance

While the SEC has issued guidance, the global regulatory environment for tokenized securities is still in early development. Different countries have varying classifications and rules, limiting large-scale adoption.

3. Divergent Valuation Logic

Recent analyses show significant differences in valuation logic between stocks and tokens. Tokens tend to exhibit higher short-term volatility, with peaks often within 30 days; stocks, on the other hand, tend to grow steadily over longer periods. Over 80% of tokens issued in 2025 traded below their TGE (Token Generation Event) price, 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

What does the future hold? Boston Consulting Group (BCG) predicts that the global asset tokenization market will grow from about $0.31 trillion in 2022 to $16 trillion by 2030.

The ultimate form is likely not “replacement” but integration and layering.

We can envision a unified asset market where stocks, bonds, commodities are all represented as digital tokens within the same infrastructure. Boundaries between asset classes will blur. 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, and long-term value investing, traditional stocks will remain essential.

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

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