Bernstein Predicts Regulatory Boost for Equity Tokenization

Bernstein analysts, led by Gautam Chhugani, highlight upcoming regulatory improvements expected to fuel equity tokenization, featuring platforms like Robinhood expanding into tokenized stocks in the EU as of June 2025.

Regulatory improvements are poised to enable equity tokenization, potentially transforming market structures and facilitating greater blockchain integration in financial systems.

Bernstein analysts suggest enhanced regulations will accelerate the equity tokenization trend. Robinhood has introduced tokenized stocks in the EU on the Arbitrum chain, enabling more private companies to enter digital asset ecosystems.

The equity tokenization initiative is supported by major crypto platforms including Coinbase and Kraken. These platforms are expanding into traditional asset classes, merging crypto and finance realms.

The launch of Robinhood’s tokenized equities platform marks a shift towards hybrid markets. This move is expected to increase on-chain activity and secure institutional interest in blockchain-based assets.

Ethereum serves as the foundational protocol for most tokenization processes. Its infrastructure supports the trading of new blockchain-based assets, highlighting its critical role across crypto and traditional equity markets.

Expected regulatory shifts in the U.S. may include a stablecoin bill, improving digital asset legal landscapes. Bernstein projects enhanced collaboration between financial regulators, aiding tokenized securities’ legal approval.

Technological advancements in Layer 2 solutions contribute to tokenization feasibility. Historically, these efforts resemble prior innovations, promising comprehensive growth across decentralized finance spheres.

Tokenization will blur the gap between crypto tokens and equities as traditional equity assets are tokenized on the blockchain. — Gautam Chhugani, Analyst, Bernstein