The tokenization of U.S. stocks has failed to gain significant traction, representing just 0.00166% of the total market capitalization. As of April 30, 2026, the combined total value locked (TVL) of all global U.S. stock tokenization projects is $1.2 billion, compared to the $72 trillion market cap of U.S. stocks. This stark contrast highlights the underperformance of tokenized stocks, which are overshadowed by the $15.2 billion TVL of tokenized U.S. Treasuries. The primary reason for this shortfall is the focus on trading characteristics rather than asset characteristics. Current tokenization projects have not met the needs of on-chain users, who seek high leverage and stable yields. Traditional financial institutions like the DTC and Nasdaq are entering the tokenization space, potentially outpacing decentralized finance initiatives. The future of tokenization may lie in leveraging asset characteristics, such as using stocks as collateral or for structured products, rather than merely as tradable tokens.