The tokenized stock sector is expanding rapidly, with Arbitrum One's on-chain equities reaching a $170 million market cap since July and Binance's bStocks product overtaking Backed's xStocks to become the second-largest issuer by market cap.
Token Terminal data shows Binance bStocks now holds $610.6 million in tokenized stock market cap, or 22.1% of the entire sector, while Backed's xStocks sits just behind at $601.2 million. Ondo Finance remains the leader with $951.8 million, commanding a 34.4% share. The total tokenized stock market has climbed to roughly $2.8 billion, up about 391% from $569.76 million at the start of the year.
On Arbitrum One, the $170 million market cap reflects growing demand for on-chain financial instruments. Companies including RealityFi, Robinhood, and DinariGlobal are issuing stocks on the layer-2 network, signaling broader integration of traditional equities with blockchain infrastructure.
Binance launched bStocks on June 11, and within nine weeks it passed xStocks, which had operated across multiple chains and platforms for about a year. The data suggests Binance largely captured new buyers rather than taking market share from competitors: xStocks grew around 228% over the same period, but its share of the market shrank as the overall category expanded.
Analysts note that bStocks trades inside the Binance app like any spot token against USDT, removing friction for users. Binance's broker-dealer Nest Trading also allows 1:1 conversion between the underlying shares and bStocks with no fee. Meanwhile, Ondo mints through other companies' front ends, including Binance's, and Kraken owns Backed, giving both distribution and issuance under one structure. Market cap by issuer measures minted supply rather than trading volume, so venues with large account bases have a structural advantage in issuance rankings.
