Why S&P Global’s new crypto-equity index may outpace tokenized ETFs

Key Takeaways 

Why does the S&P Global crypto and equity index matter? 

It tested the financial innovation using blockchain rails to allow global access to diversified investment options. 

What’s the status of tokenized stocks and ETFs? 

The sector’s value has surpassed $1B, and transfer volumes have doubled in the past month. 

S&P Global announced that it will debut the S&P Digital Markets 50 Index, a diversified benchmark that tracks 15 cryptocurrencies and 35 publicly traded firms with crypto exposure. The index will be investable via off-chain via traditional exchanges. 

At the same time, crypto natives will be able to gain exposure via a token that will track the index, thanks to a collaboration with Dinari, a real-world tokenization provider. 

For Cameron Drinkwater, Chief Product Officer at S&P Dow Jones Indices, the move would offer more options for investors. She added, 

“Market participants are beginning to treat digital assets as part of their investment toolkit – whether for diversification, growth, or innovation strategies.”

Race of tokenized stocks and ETFs

The planned tokenized version of the S&P Digital Markets 50 Index was an interesting spin-off.

In fact, Nasdaq recently sought the SEC’s permission to offer a wide array of tokenized equities and ETFs, showcasing the rising demand for blockchain access for capital markets. 

According to Anna Wroblewska, Chief Business Officer at Dinari, the on-chain ETFs demonstrated how “blockchain infrastructure can modernize trusted benchmarks.” She added that the products enhance global access.

But S&P Global is not the first to make a hybrid offering that gives exposure to crypto and related firms. 

Coinbase recently released a similar diversified product called Mag7 + Crypto Equity Index Futures, covering tech giants like Apple and BlackRock’s Bitcoin [BTC] and Ethereum [ETH] ETFs. 

Market Vector also offers another index that blends stocks, bonds and crypto, called the Crypto-Balanced Multi-Asset Index. 

That said, only a few of such products are available both traditionally and on-chain.

Solana leads tokenized equities growth

The tokenized equities sub-sector has picked up momentum, with clear dominance in Solana [SOL]. Notably, the Monthly Transfer Volume of tokenized stocks has more than doubled in the past month to nearly $600 million.

Source: RWA.xyz

 The sector is expected to outgrow stablecoins, that is currently over $300 billion. It remains to be seen how it will evolve as the SEC plans to offer clear regulation on tokenized securities.