The convergence of traditional finance and the digital asset world is gaining momentum, with cryptocurrency exchanges increasingly offering tokenized representations of stocks. This week, MEXC, a centralized cryptocurrency exchange, significantly expanded its offerings in this space through a continued partnership with Ondo Finance. The move brings a wider range of U.S. Equities onto the platform, trading against Tether (USDT), and signals a growing trend toward bridging the gap between crypto and conventional investment vehicles.
The latest expansion, announced on March 3, 2026, includes 17 newly listed tokenized stock pairs and seven additional tokens linked to U.S. Defense and energy companies. These tokens, issued as ERC-20 assets on the Ethereum blockchain, allow users to gain exposure to the price movements of underlying stocks without directly owning the shares. The underlying shares are held in regulated trust accounts and are subject to quarterly third-party audits, designed to ensure transparency and security for investors. This development underscores a broader industry effort to build stock ownership more accessible and efficient through blockchain technology.
MEXC’s foray into tokenized equities began in September 2025, and this latest addition represents the ninth expansion of its offerings in collaboration with Ondo Finance. The exchange, founded in 2018, currently ranks as the ninth largest globally by spot trading volume, according to data from CoinMarketCap. CoinMarketCap provides real-time data and analysis on the cryptocurrency market. Ondo Finance, a New York-based blockchain company, specializes in bringing traditional financial assets on-chain through tokenization, with approximately $2.66 billion in tokenized value as of the time of writing, according to data from RWA.xyz. RWA.xyz tracks the growth of Real World Asset (RWA) tokenization.
Expanding Access to U.S. Equities
The newly listed tokenized stock pairs span various sectors, including technology, healthcare, and finance. Even as the specific companies comprising the 17 new pairs haven’t been disclosed, MEXC is waiving trading fees for these pairs for the first 30 days to encourage adoption. Alongside these broader market offerings, the exchange as well added tokens representing shares in Lockheed Martin (LMT), RTX (RTX), ConocoPhillips (COP), and Occidental Petroleum (OXY). Withdrawals for these newly listed tokens are scheduled to begin on March 5, 2026.
Tokenization involves creating digital representations of real-world assets on a blockchain. In this case, each token represents a claim on an underlying share of stock. This process aims to improve liquidity, reduce settlement times, and lower barriers to entry for investors. The use of the Ethereum blockchain and the ERC-20 standard ensures interoperability and compatibility with other decentralized applications (dApps) and wallets. The fact that these tokens trade against Tether (USDT), a stablecoin pegged to the U.S. Dollar, provides a stable trading pair and mitigates some of the volatility associated with cryptocurrencies.
A Growing Trend in the Crypto Space
MEXC is not alone in exploring the tokenization of stocks. Several other cryptocurrency exchanges, including Kraken and Bybit, have already launched similar offerings. In June 2025, over 60 tokenized stocks were available on these platforms through Backed Finance’s xStocks product, encompassing major companies like Apple, Amazon, Nvidia, Tesla, Meta, and Netflix. Gemini has also entered the market through a partnership with Dinari, allowing European Union customers to trade a growing list of U.S. Stocks, including Exxon, Sony, BlackRock, and Visa, as of July 2025.
This trend reflects a broader industry push to integrate traditional financial assets into the decentralized finance (DeFi) ecosystem. Tokenization offers several potential benefits, including fractional ownership, increased transparency, and reduced costs. But, regulatory uncertainty remains a significant hurdle, particularly in the United States. Currently, tokenized stocks are largely unavailable to U.S. Investors as the industry awaits clearer regulatory guidance regarding blockchain-based securities.
Regulatory Landscape and Future Outlook
The regulatory environment surrounding tokenized stocks is complex and evolving. Securities laws, designed for traditional markets, are being applied to these new digital assets, creating challenges for exchanges and issuers. The U.S. Securities and Exchange Commission (SEC) has been scrutinizing the industry, seeking to ensure investor protection and prevent fraud. The SEC is responsible for regulating the securities markets and protecting investors.
Despite the regulatory hurdles, the potential benefits of tokenization are driving innovation in the space. Several exchanges are also expanding into traditional stock trading through brokerage-style services. In April 2025, Kraken announced plans to offer trading of around 11,000 U.S. Stocks and exchange-traded funds (ETFs) in a phased rollout across the United States. Coinbase and Bitpanda have also announced similar features, allowing users to buy and sell stocks alongside cryptocurrencies on the same platforms.
Implications for Investors
The increasing availability of tokenized stocks presents both opportunities and risks for investors. Tokenized stocks can offer a convenient and cost-effective way to gain exposure to traditional assets, particularly for those who may not have access to traditional brokerage accounts. However, investors should be aware of the risks associated with cryptocurrencies and blockchain technology, including volatility, security vulnerabilities, and regulatory uncertainty.
It’s crucial to understand that tokenized stocks are not direct ownership of the underlying shares. They are blockchain-based representations that track the value of the equity. Investors should carefully research the exchange and the issuer of the tokens before investing, and they should only invest what they can afford to lose. The lack of clear regulatory oversight in some jurisdictions adds another layer of risk.
The expansion of tokenized stock offerings by MEXC, alongside similar moves by other exchanges, demonstrates a clear trend toward the convergence of traditional finance and the digital asset world. While regulatory clarity is still needed, the potential benefits of tokenization – increased accessibility, liquidity, and efficiency – are driving innovation and attracting both investors and institutions. The next key development to watch will be the SEC’s stance on regulating these assets, which will likely shape the future of tokenized stock trading in the United States.
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