Tokenized stocks are basically traditional stocks turned into blockchain-based digital tokens. Imagine Apple stock normally lives inside the traditional stock market, but now a token representing that stock can exist on a blockchain. This can allow people to trade it through blockchain platforms and, where supported, use it in DeFi applications. The important change is that people are moving beyond simply owning these tokens. They are trading them frequently, putting them into liquidity pools, using them as collateral to borrow money, and even trading them against crypto tokens. The numbers show how quickly this is developing: the active tokenized-stock market grew from around $965 million to $4 billion during 2026, while monthly trading volume exploded from $237 million to $7.9 billion. DeFi value connected to these stocks also jumped from $21.6 million to $289.1 million. So the big idea is simple: blockchain is turning stocks from assets that you mainly buy and hold into assets that can potentially interact with the wider crypto and DeFi ecosystem. This is part of the larger RWA (Real-World Assets) trend, where things from the traditional financial world are brought onto blockchain and given new digital uses.