Tokenized stocks is a stupid idea. It is just a duplication of an existing thing, it does not bring many benefits at all. Of course it is a security, it derives its value from another financial instrument the stock. Natively issued stock on the blockchain would be a game changer though, they would not be securities as they would not be deriving their value from another financial instrument.
Ondo finance recently announced partnering with several exchanges to bring these tokenized stocks onchain
ONDO is shit.
It is bearish for Real World Asset (RWA) projects but not the entire crypto market.
Most RWA is just a fad, it won't have any impact on the entire crypto market.