We've talked about tokenized stocks and RWAs (Real World Assets) many times before. Right now, tokenized stocks are essentially just a mapping of stock names onto tokens, with little intrinsic connection to the actual stocks. But that doesn’t stop the development of on-chain stocks or the market demand for tokenized stocks. A few days ago, the SEC chairman announced plans for a super app that integrates stock and crypto investments in one place. This is what I often refer to as on-chain brokerages. The competition among on-chain brokerages is now heating up significantly. First, they’re competing on how many tokenized stocks they can list in compliance with regulations, and then it’s all about liquidity and scale. As I’ve mentioned before, one of the key issues with tokenized stocks is liquidity. The liquidity of tokens and stocks is completely unrelated, which means the liquidity of tokenized stocks is heavily restricted, including by market makers, and has no connection to the liquidity of the underlying stocks. For example, take MSTR. In the stock market, a $100,000 buy or sell order might not move the price by even 0.1%. But in the tokenized stock market, a $100,000 order could cause MSTR’s price to fluctuate by more than 1%. That’s the impact of depth. Currently, most tokenized stock exchanges rely on independent secondary market liquidity, which has no relation to the liquidity of the actual stocks. However, with Ondo’s Wall Street 2.0 upgrade, it has become the first trading platform to link its depth with traditional stock market exchanges. This significantly improves the liquidity of tokenized stocks on Ondo, making trading much smoother. This post is supported by data from @OndoFinance and is not investment advice.