Tokenized stocks could follow stablecoins’ growth path over next five years, Flowdesk CEO says

Guilhem Chaumont expects equities and ETFs to drive the next phase of onchain adoption, although institutional custody concerns and regulation remain major obstacles. Tokenized stocks could follow the growth trajectory of stablecoins over the next four to five years as financial institutions bring equities and exchange traded funds onchain, according to Guilhem Chaumont, CEO of crypto market maker Flowdesk. In comments shared with Crypto Briefing, Chaumont said the cryptocurrency industry’s focus is shifting from tokenizing fiat currencies to bringing liquid financial assets onto blockchain networks, with regulatory approval and institutional risk management determining how quickly the transition unfolds. The tokenized stock market has reached approximately $4.63 billion in capitalization, according to Token Terminal data, comparable to the stablecoin market in March 2020. Stablecoins have since expanded nearly 64 times to approximately $297 billion, illustrating the scale of adoption Chaumont believes tokenized equities could eventually pursue. The market remains concentrated among a handful of providers, with Binance bStocks, Ondo Finance and xStocks accounting for more than 80% ...