Cryptocurrencyexchanges are rapidly expanding into tokenized stock trading, with multipleplatforms launching blockchain-based equity offerings this week that allowusers to trade traditional stocks like Apple and Tesla around the clock.Bitget andKraken both announced new tokenized stock capabilities on Wednesday, joining agrowing list of crypto platforms offering digital versions of U.S. equities tousers outside the United States. Bitget Integrates xStocksto Bring Wall Street to Web3 Bitgetintegrated xStocks into its Onchain platform, enabling users to trade tokenizedversions of major companies including Tesla (TSLAx), Nvidia (NVDAx), Apple(AAPLx), and the S&P 500 ETF (SPYx). The integration allows crypto users toaccess these assets without traditional brokerage accounts."We'reentering a new phase of market access, one where crypto, stocks, andtraditional finance don't compete, they coexist and complement eachother," said Gracy Chen, CEO at Bitget.“Withtokenized equities on Onchain, we’re giving users the ability to move betweenasset classes with the speed and flexibility of Web3, while still connecting tothe value of traditional markets. This is how we see CeDeFi evolving it's aneasier alternative that has fewer blockades, and higher chances of adoption.”Bitgetstresses three points that it says set the service apart: Firstly, trades clearon-chain in seconds, cutting the two-day wait that traditional brokers stillrequire. Secondly, tokens trade 24 hours a day, five days a week, avoiding WallStreet’s opening bell-to-closing bell limits. And thirdly, users pay blockchaingas but no brokerage commission, and the tokens are freely transferable betweenwallets.Kraken Expand TokenizedStocks to BNB ChainMeanwhile,Kraken and tokenized asset issuer Backed Finance expanded their xStocksoffering to the BNB Chain, allowing the same tokenized equities to be issued asBEP-20 tokens. The move enables users to deposit and withdraw these tokensthrough BNB Chain in the coming weeks."Thisis the beginning of an always-on equity market - one that is permissionless,transparent, and built for the internet," said Arjun Sethi, co-CEO ofKraken.Krakenfirst announced its intention tolaunch tokenized U.S. stocks in late May, with the official rollout takingplace atthe end of June. Around the same time, a similar product was introduced byanother major exchange, Bybit.Trading Platforms Race toCapture Market ShareTheannouncements follow a wave of similar launches across the crypto industry. Robinhoodrecently announced plans to offer tokenized stocks in Europe, while Geminihas introduced trading with tokenized U.S. stocks through partnerships.Coinbase is seeking regulatory approval tobring tokenized stocks to U.S. customers.The xStocksAlliance, which includes over 60 equity and ETF tokens, has become a keyinfrastructure provider for these offerings. BNB Chain's addition to thealliance expands the network of exchanges and decentralized finance protocolssupporting tokenized equity trading.Theseplatforms are marketing several advantages over traditional stock trading,including 24/5 trading hours, faster settlement times, and the ability to usetokenized stocks as collateral in decentralized finance protocols. The tokenscan be moved across different blockchain networks and integrated with lendingand derivatives products.Skeptics Question AddedValue Over Existing ProductsHowever,some industry observers question whether tokenized stocks offer meaningfuladvantages over existing financial products. Criticsnote that the tokens function similarly to contracts for difference (CFDs),which European brokers have offered for years."It'swrapper," wrote Anton Golub, Chief Business Officer at Dubai-based cryptoexchange Freedx, in a LinkedIn post. "It's not real equity," headded, pointing out that buyers would own tokens tracking real stocks ratherthan actual shares.Liquidityconcerns also persist, particularly forround-the-clock trading. While platforms promise 24/5 access, traditionalmarket makers cannot hedge positions during weekends, potentially leading towide spreads and limited liquidity during off-hours.Theregulatory landscape remains complex, with most platforms offering tokenizedstocks only to non-U.S. users. European regulations allow broader access tothese products compared to U.S. securities laws, making Europe the primarymarket for now.Market Momentum BuildsDespite ChallengesDespiteskepticism, institutional interest in tokenized assets continues growing.Market research suggests tokenization of real-world assets could expand fromapproximately $0.6 trillion in 2025 to $18.9 trillion by 2033.Majorfinancial institutions including BlackRock and JPMorgan have moved beyond pilotprograms to deploy blockchain-based products, while traditional brokers race tocapture market share in the emerging sector.Thetokenized stock offerings remain limited to users outside the United States dueto regulatory restrictions, though Coinbase continues pushing for approval toserve U.S. customers. Most platforms operate through offshore entities orEuropean licenses to provide these services.This article was written by Damian Chmiel at www.financemagnates.com.