MEXC chief executive Vugar Usi Zade told Bitcoin.com News that the market for tokenized equities is poised to become a multi‑billion‑dollar industry, with trading volumes expected to outstrip traditional crypto spot markets in the near future. The outlook comes as a growing number of U.S. companies, including Amazon and Tesla, have formally objected to third‑party tokenized stock offerings, raising regulatory and brand‑risk concerns.

Rapid Growth of Tokenized Equity Trading

According to MEXC, investors have moved billions of dollars into tokenized U.S. stocks and ETFs, seeking 24‑hour access and cross‑border liquidity unavailable on legacy exchanges. The exchange estimates the global tokenized equity market is approaching $6 billion, driven by over $300 billion of stablecoins held in blockchain wallets that investors want to deploy without exiting the crypto ecosystem. AI‑focused companies dominate the top‑10 traded tokenized equities, accounting for 59 % of volume in September, a trend Usi Zade attributes to the overlap between crypto‑savvy users and early AI adopters.

Corporate Resistance and Brand‑Risk Concerns

A coalition of roughly 50 listed firms, among them Amazon, Tesla, Netflix, SpaceX, SoFi Technologies and Lam Research, has filed objections to OKXICE’s plan to list tokenized versions of their shares. While the companies have not disclosed detailed reasons, Usi Zade argues the primary issue is brand risk: issuers fear liability if a synthetic wrapper deviates from the underlying stock price or fails technically. He notes that institutional investors are likely to wait for issuer‑approved wrappers, whereas retail participants continue to trade unauthorized tokens because they prioritize convenience and cost over issuer endorsement.

SEC Innovation Exemption and Liquidity Implications

In response to mounting concerns, the U.S. Securities and Exchange Commission introduced an Innovation Exemption framework that requires tokenizers to notify issuers before creating on‑chain wrappers and grants issuers a veto right. Trading venues must also respect primary‑exchange halts and adhere to limits on eligible stocks and volumes. Critics warn that this veto power could fragment liquidity, while Usi Zade contends that, over time, issuer‑controlled tokenization will legitimize the market and improve depth.

What to Watch Next

Observers will monitor how many issuers choose to grant approval for tokenized shares, the SEC’s enforcement of the Innovation Exemption, and whether volume on authorized wrappers begins to rival that of unauthenticated tokens. The evolution of collateral‑use cases—such as employing tokenized shares in liquidity pools or yield strategies—could also shape the sector’s growth trajectory.