Security tokens continue to play an increasing role of importance. Tokenizing securities has proven a viable business approach for many companies. With a market cap of over $18.6 billion, big players are now entering the market at an accelerating rate.
More Security Tokens Than Ever
The first metric to keep tabs on is the overall growth of the security tokens market. It appeared as if only a handful of companies wanted to take the plunge and see if it was a worthwhile endeavor. Eventually, the industry began attracting some more exotic versions – such as a whisky fund – confirming there is merit to STOs.
Today, the industry represents a market cap of over $18.6 billion. However, a lot has changed in recent months, primarily due to more security token offerings becoming accessible. In fact, there are roughly 200 offerings tracked on STOMarket, which is a relatively healthy sign.
The big new entrants include Enegra Group ($15.1 billion market cap) and Dignity Gold ($2.856 billion market cap). These are the only two projects to surpass $150 million in market capitalization, with Blockchain Capital being the only other project exceeding $100 million. Established players like tZERo, INX Limited, and SPiCE VC are still around, confirming the STO market is healthy and growing.
Furthermore, there are more exchanges where one can trade these security tokens. Platforms like BigONE, CryptoSX, Securitize Markets, tZERO, XT, INX Securities, and ERX all compete for traction. Broader accessibility and availability will bring more attention to the STO industry and give everyone a better chance of making potential future-proof investments.
What About Tokenized Stocks?
Another industry tracked by STOMarket focuses on tokenized stocks. Although one can trade these vehicles across crypto exchanges like FTX, they do not always generate too much attention. It is worth noting DeFiChain lets users mint decentralized assets which may be tied to stocks, even if they do not automatically follow that asset´s price. Even so, tokenized stocks represent a market cap of over $2.2 million, with TSLA-FTX generating the most volume.
Both tokenized stocks and security tokens seem to be going through a growth phase. That growth is far less outspoken for tokenized stocks, although things can always change for the better. Security tokens have genuinely token off and attracted tremendous interest, with more – and bigger – players entering the market in recent months.
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