U.S. Stock Logic + On-Chain 72-Hour Trading: Mechanisms and Market Data Explained

Author: 137Labs

Recently, significant progress has been made in the tokenized US stock (Tokenized Stocks) sector:

• Kraken launched the on-chain tokenized stock platform xStocks
• Coinbase is seeking regulatory approval
• Solana submitted a blockchain-based tokenized securities framework
• Robinhood launched tokenized stock products in the European market

Meanwhile, global market data shows that the size of tokenized stocks is rapidly growing, providing important context for understanding this trend.

1. On-Chain 72-Hour Trading Mechanism

1. Traditional US Stock Trading System

The core features of the traditional US stock market include:

• Fixed trading hours

Trading mainly occurs during regular hours on US Eastern Time on weekdays, with lower liquidity during pre-market and after-hours sessions. Liquidity concentrates during main market hours.

• T+1 Settlement System

Transactions typically settle the next trading day (historically T+2).

• Mature Clearing System

Trades and settlements are handled by licensed brokers and clearinghouses, with a well-established system and high certainty of delivery.

Advantages: Stable system, clear legal framework, mature risk control.

Limitations: Trading hours are limited; global investors face time zone friction.

2. On-Chain Extended Trading Hours Mechanism

A key feature of tokenized US stocks is extended trading hours:

• xStocks offers 5×24-hour trading
• Robinhood Europe version provides 24/5 access
• Multiple on-chain solutions are attempting to approach 7×24-hour trading

Notable participants include:

• Backed Finance
• Solana Policy Institute
• Ondo Finance

Key Difference:

On-chain tokens can be transferred in real-time, but this does not equate to legal, final settlement of the underlying stocks.

In most structures:

• Actual stocks are still held by brokers or custodians
• On-chain trading reflects the circulation of share certificates
• Final legal settlement depends on traditional clearing systems

Therefore:

On-chain real-time transfer ≠ Real-time final settlement

2. Platforms Supporting On-Chain US Stocks

The current market can be roughly divided into four categories:

1. Centralized Exchanges (CEX)
2. Compliant tokenized issuers
3. Public chain + ecosystem players
4. Derivatives protocols (non-actual stock tokenization)

1. Centralized Exchanges (CEX)

(1) Kraken – xStocks

• Launch: June 2025
• Partners: Backed Finance, Solana
• Supported assets: 200+ US stocks
• Trading hours: 5×24 hours

Ecosystem collaborations include:

• Raydium
• Jupiter
• Kamino Finance
• Chainlink
• Alpaca

Features:

• Supports both CEX and on-chain trading
• Can be used as collateral in lending protocols
• Incorporates market maker systems
• Relatively complete structure

(2) Coinbase

• Seeking SEC no-action letter or exemption
• Plans to offer tokenized stocks to US users
• Proposed on-chain issuance of COIN in 2020

If approved, it would become the first large-scale exchange-level tokenized stock platform targeting US domestic users.

(3) Robinhood (Europe version)

• Based on Arbitrum
• Supports dividend distribution
• 5×24-hour access
• No free on-chain transfer allowed

Essentially a price-tracking structure, not fully freely tradable on-chain stocks.

(4) Bybit

• Participates in xStocks ecosystem
• Previously launched US stock index trading based on MT5
• Mainly uses derivatives logic

2. Compliant Tokenized Issuers

(1) Dinari (US-registered)

• Founded: 2021
• Launched tokenized stocks in 2023
• Partner brokers: Alpaca, Interactive Brokers
• Supported networks: Ethereum, Arbitrum, Base
• KYC required
• Trading only during US stock trading hours
• No on-chain free circulation

Scale:

• Stock assets in the millions USD
• TVL mainly in government bond products

Features: Fully operates within SEC framework.

(2) Backed Finance (Switzerland-registered)

• Founded: 2021
• Launched in early 2023
• Issues ERC-20 bSTOCK tokens
• Supports on-chain free trading
• No mandatory KYC for retail users

Public data:

• Tokenized stock assets approximately $20 million
• Liquidity pool TVL around $8 million
• Average LP yield over 30%

Supported chains:

• Gnosis
• Base
• Avalanche

(3) SwarmX

• Europe-registered
• Similar model to Backed
• Smaller scale
• Supports on-chain trading

(4) Exodus (NYSE: EXOD)

• US-listed company
• Allows migration of its own stock to Algorand
• Does not support on-chain trading
• Lacks full shareholder rights

Classified as “digital registration” type tokenization.

3. Public Chain + Ecosystem Players

(1) Solana – Project Open

• Driven by Solana Policy Institute
• Submitted a tokenized securities issuance framework
• Issuers must register
• Investors must KYC
• Allows on-chain transfer proxy records

Applying for an 18-month exemption to support on-chain trading.

(2) Ondo – Global Markets

• Key player in RWA government bonds
• Planning to launch tokenized US stocks
• 24×7 trading
• Instant minting and burning
• Can be used as collateral
• Targeting non-US users

(3) Superstate

• Related to Solana framework
• Focuses on RWA compliant structures
• Has not yet launched large-scale stock tokenization

4. Derivatives Protocols (Non-Real Stock Tokenization)

These platforms do not purchase real stocks but offer price-tracking products.

(1) Gains Network

• Deployed on Arbitrum / Polygon
• Similar to perpetual contracts
• Uses Chainlink for pricing
• No KYC
• Average daily trading volume < $2 million

(2) Helix (Injective)

• Supports US stocks and forex
• Average daily trading volume < $10 million
• No KYC required

(3) Synthetix / Mirror

• Launched in 2020 cycle
• Synthetic asset model
• Trading volume has not scaled significantly

(4) Shift

• Uses reference asset token structures
• US stocks held by brokers
• No KYC for users
• No shareholder rights

5. On-Chain ETF Exploration

Index-based assets are more suitable for on-chainization, such as:

• Invesco’s Invesco QQQ Trust

Features:

• Index exposure
• Diversified risk
• Better suited as collateral or LP assets

Currently, on-chain ETF scale remains small but is considered easier to standardize.

3. T+1 / T+2 Settlement Differences

Traditional US Stocks

• Currently T+1 settlement
• Settlement occurs after trade
• Historically T+2

On-Chain Tokenized Structures

• Tokens can be transferred instantly
• Underlying stocks still held by brokers
• Legal settlement depends on traditional clearing

This creates a “dual-layer” structure:

1. On-chain circulation is fast
2. Underlying assets settle according to traditional rules

Potential impacts:

• Short-term price discrepancies
• Reduced on-chain liquidity leading to slippage
• Redemption risk depends on issuance structure

Conclusion

The current size of the tokenized US stock market remains small relative to the overall US stock market, with very low market share, but participant diversity is increasing.

Its structural features include:

• Significantly extended trading hours
• Enhanced on-chain liquidity
• Parallel settlement paths with traditional markets
• Clear platform segmentation

Tokenized US stocks are still in early stages, but extended trading hours + on-chain composability are transforming asset circulation and providing new technological pathways for cross-market trading structures.

Disclaimer:

This article is solely a compilation and analysis of related market mechanisms and publicly available information. It does not constitute any investment advice or invitation. Markets carry risks; please exercise caution in decision-making.