Key facts
- Tokenized stock trading volume hit a record $11.3 billion in July.
- This volume represents a 288% increase.
- A single token, QQQB, on Binance accounted for 82% of the total trading volume.
- Excluding QQQB, tokenized stock trading volume decreased by 30% in July.
- Binance offered zero maker fees for QQQB and a VIP volume multiplier program to boost its trading.
Tokenized stock trading volume surged by 288% to a record $11.3 billion in July, according to a report by CoinDesk Data. However, this significant increase was largely driven by a single token, QQQB, on the Binance exchange, which tracks Invesco's QQQ ETF. QQQB alone generated $9.27 billion in trading volume, accounting for approximately 82% of the total tokenized equity market.
Excluding the QQQB token, the total volume for tokenized stocks in July was approximately $2.03 billion. This figure represents a decrease of about 30% compared to the implied market total of $2.91 billion in June. Other tokens like xStocks saw their volume drop to $335 million from $1.55 billion, while Ondo recorded $792 million and Backpack $479 million.
The substantial growth in QQQB's trading volume is attributed to Binance's promotional strategies. The exchange offered zero maker fees for the token until August 31 and introduced a VIP volume multiplier program on July 23, which counted stock and bStocks volume at three times its traded value for users aiming for higher VIP tiers. These incentives likely attracted significant trading activity to the QQQB token.
Despite the surge in tokenized trading volume, the underlying Invesco QQQ Trust experienced a decline of 6.6% in July. This performance mirrored a broader market downturn, with the Nasdaq Composite falling 3.2% and the S&P 500 slipping 0.1%. The volatility in the tech sector was partly fueled by AI and semiconductor stocks, with the iShares Semiconductor ETF dropping 22.1% and Micron's stock falling 28.7%. The round-the-clock accessibility of tokenized equities is a key appeal, offering non-U.S. users trading opportunities outside of traditional U.S. market hours.