SBI Holdings, a Japanese financial services group, has teamed up with Startale Group to launch an onchain trading platform for tokenized stocks and real-world assets.

The platform will let users trade tokenized stocks anytime, with features like faster cross-border settlements and fractional ownership.

The companies plan to integrate tokenized stocks with DeFi protocols and provide institutional custody and compliance monitoring.

They will set up two joint ventures: one to develop core technology and another for business expansion.

A launch date has not been announced.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Major financial platforms are racing to capture the tokenized stock opportunity

SBI’s partnership with Startale reflects an intensifying competition among major financial institutions to dominate the tokenized stock market.

Robinhood has already launched tokenized stocks in Europe offering over 200 U.S. stocks, while Kraken provides more than 50 stock tokens with zero trading fees 12. This competitive landscape demonstrates that established players recognize the significant revenue potential in this space.

Coinbase’s CEO highlighted that capturing just 3% of the equities trading market could double the current crypto market size, emphasizing why major platforms are prioritizing tokenized stock offerings 1.

The race extends beyond traditional crypto exchanges to include major financial conglomerates like SBI, suggesting that tokenized stocks are transitioning from a niche crypto product to a mainstream financial service that traditional institutions cannot ignore.

2️⃣ The tokenized stock concept has moved from experimental to mainstream implementation

While SBI’s announcement may seem cutting-edge, tokenized stocks have been in development for over six years, indicating the concept has reached commercial viability.

The MERJ Exchange launched the world’s first tokenized IPO in 2019, while Mt Pelerin issued the first legally compliant company shares on-chain in 2018 34. These early implementations provided crucial proof-of-concept and regulatory precedents that current platforms can build upon.

The market has grown from these experimental beginnings to a current valuation of approximately $47.5 million, with projections reaching $19 trillion by 2033 25.