Tokenized stock market dominated by only two players, study reveals

**Tokenized Stock Market Concentration Raises DeFi Concerns as Two Giants Control Trading**

A comprehensive study reveals the rapidly expanding tokenized stock market faces significant centralization, with Backed and Ondo Global Markets controlling virtually all trading activity in blockchain-based traditional securities. This concentration contradicts the decentralized finance (DeFi) principles that cryptocurrency advocates champion.

The tokenized securities sector, which bridges traditional finance with blockchain technology, has gained momentum as investors seek exposure to popular U.S. tech stocks and ETFs through cryptocurrency platforms. However, the dominance of just two players raises questions about market competition and systemic risk in this emerging digital asset class.

This development highlights the ongoing evolution of tokenization within the broader cryptocurrency ecosystem, where Bitcoin and other digital assets continue reshaping financial markets. The concentration could impact price discovery mechanisms and limit innovation in tokenized securities trading.

Market participants and regulators are closely monitoring this trend as tokenized assets become increasingly integrated with traditional DeFi protocols. The findings underscore the need for greater diversification in tokenized stock market infrastructure to ensure healthy competition and reduced counterparty risk in this growing blockchain-powered sector.