Tokenization of Stock Revolution: xStocks TSL Volume Explosion, Korean Retail Investors May Become the Biggest Winners

The tokenization of the stock market is quietly rising, and the popular US stock tokenized versions provided by the xStocks platform have started to attract investor attention. This innovative financial product allows investors to trade blockchain versions of popular stocks like TSL 24/7, breaking the time and geographical limitations of traditional markets. Although still in the early stages, the market has shown some compelling development trends.

Three Key Observations: TSL Dominance, Weekend Trading Shrinks, Price Convergence

Observation 1: Trading is highly concentrated in Tesla (TSLA)

(Source: Four Pillars)

Similar to many emerging markets, trading activity on the xStocks platform quickly gathers around a few stocks, with Tesla (TSLA) being the most prominent representative. Data shows that trading volume is highly concentrated on the most well-known and volatile stocks.

This kind of centralization phenomenon is not surprising:

Liquidity often accumulates on assets that retail investors are already familiar with.

Early participants often use high beta stocks to test new trading infrastructure.

As a representative of technology stocks, TSL itself has a high level of market follow.

Observation 2: Weekend liquidity significantly decreased

(Source: Four Pillars)

Although blockchain technology theoretically supports 24/7 trading, data shows that on weekends, on-chain stock trading volumes drop to 30% or lower of weekday levels. This phenomenon indicates that tokenized stocks still inherit the trading behavior patterns of traditional markets.

Possible reasons for the decline in weekend trading:

When reference markets such as Nasdaq and the New York Stock Exchange are closed, traders lack confidence.

· Concerns about arbitrage risks and price gaps

· The limitation of not being able to hedge positions in the off-chain market

Observation 3: Price is Gradually Converging with NASDAQ

The pricing behavior of xStocks tokenized stocks also provides important market signals. In the early stages of its launch, the trading price of the tokens was significantly higher than that of their corresponding stocks on Nasdaq, reflecting the market's enthusiasm and the potential friction in bridging fiat liquidity. However, over time, these premiums are gradually decreasing.

The current trading model shows:

· Token prices are usually at the upper limit of the TSL intraday price range.

· Highly consistent with the Nasdaq reference price

· Arbitrageurs seem to be maintaining price discipline

· The intraday high still shows slight deviations, creating opportunities for active traders.

Korean Investors: Potential Driving Force of Tokenization in the Stock Market

The development of the tokenization of the stock market may bring particularly significant opportunities for Korean investors. Data shows that Korean investors currently hold over $100 billion in U.S. stocks, with trading volume increasing an astounding 17 times since January 2020.

However, there are many limitations in the current infrastructure for Korean investors trading US stocks:

· High costs

· Long settlement time

· The cashing process is slow.

These pain points create excellent market opportunities for tokenization or on-chain mirrored stocks. As the infrastructure and platform supporting the on-chain US stock market continue to improve, a new group of Korean traders is expected to enter the crypto market on a large scale, bringing new vitality and liquidity to the entire ecosystem.

The tokenization of the stock market is still in its early stages, but it has already shown great potential, especially in breaking down geographical barriers and improving trading efficiency. With the maturation of technology and the clarification of the regulatory environment, this innovative financial product could become an important bridge between the traditional stock market and the world of cryptocurrencies.