US Stock Market Logic + On-Chain 72-Hour Trading: Detailed Explanation of Mechanisms and Market Data

Author: 137Labs

Recently, there have been several substantial developments in the tokenized stocks sector:

• Kraken launches xStocks, an on-chain tokenized stock platform

• Coinbase is seeking regulatory approval.

• Solana submits a blockchain-based framework for tokenized securities.

• Robinhood launches tokenized equity product in Europe

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

I. On-chain 72-hour transaction mechanism

1. Traditional US stock trading mechanism

The traditional U.S. stock market has the following core characteristics:

• Fixed trading hours

  Trading is primarily conducted during regular trading hours on weekdays (Eastern Time), with weaker liquidity before and after market hours, and liquidity concentrated during the main market hours.

• T+1 settlement system

  After a transaction is completed, the settlement of funds and securities is usually completed on the next trading day (historically, it was T+2).

• Mature clearing system

  Transactions and settlements are completed through licensed securities firms and clearing institutions, a mature system with high certainty of delivery.

Advantages: Stable system, clear laws, and mature risk control.

Limitations: Trading hours are restricted, and global investors face time zone friction.

2. On-chain extended transaction period mechanism

A significant characteristic of tokenized US stocks is the extended trading hours:

• xStocks offers 24/7 trading.

• Robinhood's European version offers 24/7 access.

• Multiple on-chain solutions are attempting to achieve near 24/7 trading.

Representative participants include:

• Backed Finance

• Solana Policy Institute

• Ondo Finance

Key differences:

On-chain tokens can be transferred in real time, but this is not equivalent to the legally binding and final settlement of the underlying stock.

In most structures:

• The actual shares are still held by the securities firm or custodian institution.

• On-chain transactions are reflected in the circulation of share certificates.

• Final legal settlement relies on the traditional clearing system

therefore:

II. Classification of Platforms Supporting On-Chain Integration of US Stocks

The current market can be roughly divided into four categories:

1. Centralized Exchanges (CEXs)

2. Compliant tokenization issuers

3. Public chain + ecosystem framework players

4. Derivatives Protocol (Tokenization of Non-Real Stocks)

1. Centralized Exchanges (CEX)

(1) Kraken – xStocks

• Launch date: June 2025

• Partners: Backed Finance, Solana

• Supported stocks: 200+ US stocks

• Trading hours: 5 x 24 hours

Ecological cooperation includes:

• Raydium

• Jupiter

• Kamino Finance

• Chainlink

• Alpaca

Features:

• Supports both CEX and on-chain transactions

• Can be used as collateral in loan agreements

• Introducing a market maker system

• The structure is relatively complete

(2) Coinbase

• Seeking no action letter or exemption from the SEC

• Plans to open tokenized shares to US users

• The idea of ​​issuing COIN on-chain was proposed in 2020.

If approved, it will become the first large-scale exchange-based tokenized stock platform targeting users in the United States.

(3) Robinhood (European version)

• Based on Arbitrum

• Support dividend distribution

• 5 x 24-hour access

• Free transfer on the chain is not allowed

Its essence is a price tracking structure, rather than a fully freely tradable on-chain stock.

(4) Bybit

• Participate in the xStocks ecosystem

• Previously launched a US stock index trading platform based on MT5.

• Primarily employs derivatives logic

2. Compliant tokenization issuers

(1) Dinari (US registered)

• Established: 2021

• Tokenized stocks to be launched in 2023

• Partner brokers: Alpaca, Interactive Brokers

• Supported networks: Ethereum, Arbitrum, Base

• KYC is required

• Trading only during US stock market trading hours

• Does not support free circulation on the blockchain

scale:

• Stock size in the millions of dollars

• TVL is mainly concentrated in government bond products.

Features: Operates entirely within the SEC framework.

(2) Backed Finance (Swiss registered)

• Established: 2021

• Launched in early 2023

• Release ERC-20 bSTOCK

• Support free on-chain transactions

• KYC is not mandatory for end users.

Public data:

• The tokenized shares are valued at approximately $20 million.

• Flow pool TVL approximately $8 million

• Average LP yield is approximately 30%+

Support Chain:

• Gnosis

• Base

• Avalanche

(3) SwarmX

• European Registration

• Similar to Backed

• Smaller scale

• Support on-chain transactions

(4) Exodus (NYSE: EXOD)

• US-listed companies

• Allows migration of its own stock to Algorand

• On-chain transactions are not supported.

• Not possessing full shareholder equity

It belongs to the category of "digital registration" tokenization.

3. Public blockchain + ecosystem framework players

(1) Solana – Project Open

• Promoted through the Solana Policy Institute

• Submit a framework for tokenized securities issuance

• Issuers need to register

• Investors need to complete KYC (Know Your Customer) procedures.

• Allow on-chain transfer agent records

We are applying for an 18-month exemption to support on-chain transactions.

(2)Ondo – Global Markets

• RWA, a major player in the Treasury bond market

• Plans to launch tokenized US stocks

• 24/7 trading

• Instant casting and destruction

• Can be used as collateral

• For non-US users

(3) Superstate

• Related to the Solana framework

• Focus on RWA compliance structure

• Stock tokenization has not yet been widely implemented.

4. Derivatives Protocols (Tokenization of Non-Real Stocks)

These platforms do not buy real stocks, but instead provide price tracking products.

(1) Gains Network

• Deployed on Arbitrum / Polygon

• Similar to perpetual contracts

• Quoting using Chainlink

• No KYC required

• Average daily trading volume < 2 million USD

(2) Helix (Injective)

• Supports US stocks and foreign exchange

• Daily trading volume < $10 million

• No KYC required

(3) Synthetix / Mirror

• Launched in 2020

• Synthetic asset model

• Trading volume has not yet reached a significant scale.

(4) Shift

• Using the reference asset token structure

• US stocks are held in custody by brokerage firms

• No KYC required for users

• No shareholder equity

5. Exploring ETF On-Chain Integration

Index-based assets are better suited for on-chain implementation, for example:

• Invesco

• Invesco QQQ Trust

Features:

• Indexed exposure

• Risk diversification

• More suitable as collateral or LP subject matter

Currently, the on-chain size of ETFs is still small, but they are considered easier to standardize.

III. T+1 / T+2 Settlement Differences

Traditional US stocks

• The current settlement is T+1.

• Settlement and delivery are required after the transaction.

• Historically, it was T+2

On-chain tokenization structure

• Tokens can be transferred in real time.

• The underlying stocks are still held in custody by securities firms.

• Legal settlement relies on traditional clearing systems

This results in a "two-layer structure":

1. Fast on-chain circulation

2. The underlying assets are settled according to traditional rules.

Potential impacts:

• Short-term price differences

• Insufficient on-chain liquidity leads to increased slippage.

• Redemption risk depends on the issuance structure

in conclusion

The current tokenized US stock market is still relatively small, accounting for a very small percentage of the overall US stock market, but the participants are becoming more diversified.

Its structural features include:

• Trading hours significantly extended

• Enhanced on-chain circulation capacity

• Settlement pathways run parallel to traditional markets

• Platform types are clearly differentiated

Tokenized US stocks are still in their early stages, but extended trading hours and on-chain composability are changing the way assets circulate, providing new technological pathways for cross-market trading structures.

Disclaimer:

This article is merely a compilation and analysis of relevant market mechanisms and publicly available information, and does not constitute any form of investment advice or invitation to invest. The market is risky; decisions should be made with caution.