TD Securities, a major Canadian investment bank with operations across North America, says tokenization may be approaching an institutional tipping point after the New York Stock Exchange introduced tokenized stocks.
In a recent comment, TD Securities Reid Noch, vice president of electronic trading, said that tokenization will have a real impact on market structure and pointed to the NYSE’s alternative trading system (ATS) as a key development.
The planned platform enables 24-hour trading and instant settlement of tokenized stocks and exchange-traded funds (ETFs) with regulatory approval.
Instead of creating a parallel crypto-modern market, the venue is designed to operate within existing US market regulations and use a blockchain-based settlement infrastructure.
Noh described the structure as a market shift closer to “2.0,” where custody and settlement will remain with the Depository Trust and Clearing Corporation (DTCC), while trading will comply with national best bid and offer (NBBO) requirements. This means that prices must reflect the best bid and offer available across US exchanges to avoid fragmented liquidity.
Although Knoch said early activity is expected to be retail-based, the broader implications are much broader than individual traders.
TD Securities’ institutional focus indicates that the company sees potential impact on the underlying market pipeline, including trading hours, collateral management, settlement cycles and liquidity, areas that shape the way large financial institutions operate.
related to: Crypto Investment Playbook 2026: Bitcoin, stablecoin infrastructure, tokenized assets
Tokenized shares gain institutional traction
According to industry data, tokenization accelerated in 2024, driven primarily by private debt and US Treasury products, which accounted for the majority of onchain real asset (RWA) issuance.
Despite the broader volatility of the crypto market, capital inflows into tokenized assets have continued, indicating sustained institutional interest in blockchain-based settlement and ownership models.
Recently, tokenized shares have started to gain traction. The xStocks platform Kraken emerged as one of the more prominent entrants, reporting a total trading volume of more than $25 billion since its launch last year.
Although tokenized stocks remain a small part of global stock market activity, their growth reflects a broader shift toward incorporating traditional financial instruments into a regulated framework.
related to: Kraken launches stock trading in Europe with xStocks
