Tokenized stock trading surges 288% in July to record $11.3 billion

Tokenized stock trading volume surged 288% to a record $11.3 billion in July, but the growth was highly concentrated. A single token on Binance, QQQB, accounted for $9.27 billion (82%) of the total, driven by zero-fee promotions and a VIP volume multiplier. Excluding this single token, the broader market's volume actually fell by 30% to $2.03 billion, highlighting the nascent state of the sector despite its 24/7 trading appeal.

Tokenized stock trading volume surge

• ▪In one seven-day period in July, combined trading volume for real-world asset (RWA) perpetuals on Hyperliquid and Binance reached $61.7 billion.
• ▪The value of on-chain real-world assets (RWAs) has grown to approximately $36.8 billion, excluding stablecoins.
• ▪Excluding the QQQB token, tokenized stock trading volume in July was $2.03 billion, a 30% decrease from June's estimated $2.91 billion.
• ▪Trading volume for tokenized stocks and ETFs reached a record $11.3 billion in July, a 288% increase.
• ▪RWA perpetuals represent about 7.5% of the total aggregate crypto futures trading volume of $821.4 billion over a recent seven-day period.

Binance QQQB dominance

• ▪In July, trading volume on xStocks fell to $335 million, while Ondo and Backpack recorded $792 million and $479 million respectively.
• ▪The Binance bStocks token QQQB, which tracks Invesco’s QQQ ETF, generated $9.27 billion in volume, representing 82% of the total.
• ▪The QQQB token began trading on Binance on June 30 with a zero maker fee promotion lasting through August 31.
• ▪On July 23, Binance started counting bStocks volume at three times its value for some users aiming for higher VIP tiers.
• ▪Binance's bStocks platform accounted for $9.41 billion, or 83.3%, of the total tokenized stock trading volume in July.

Traditional market volatility

• ▪In July, the Invesco QQQ Trust, the asset underlying the QQQB token, fell 6.6%, while the Nasdaq Composite declined 3.2%.
• ▪Heightened trading volume for the traditional QQQ ETF in July was driven by AI-related stock volatility, an FOMC meeting, and big tech earnings.
• ▪During July, the Invesco QQQ Trust traded as much as 10.2% below its June 30 closing price before rebounding.
• ▪The iShares Semiconductor ETF dropped 22.1% in July, its worst monthly performance since December 2002.

Round-the-clock trading appeal

• ▪Intercontinental Exchange CEO Jeffrey Sprecher urged regulators to establish a 'level playing field' for 24/7 on-chain perpetual futures.
• ▪Tokenized equities offer round-the-clock trading, providing non-U.S. users access when U.S. markets are closed.
• ▪Pantera Capital has suggested that perpetual futures could become a dominant trading instrument due to advantages like 24/7 trading.
• ▪Circle CEO Jeremy Allaire stated that growing RWA trading indicates crypto markets are moving away from speculating on native digital assets.

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