Tokenized stocks
Also called: stock tokens · tokenized equities · xStocks
Definition
Tokenized stocks are blockchain tokens designed to track the price of a company's shares, usually backed one to one by real shares held by a custodian.
This entry is shown in English.
How Tokenized stocks works
A provider buys real shares, holds them with a regulated custodian and issues tokens that represent them. The tokens can trade on exchanges or move on-chain, sometimes 24 hours a day, even when stock markets are closed. Some products pass on dividends as extra tokens or cash.
Holders usually do not get the same rights as shareholders. You typically cannot vote at company meetings, and your claim is against the issuer and its custodian, not the company itself. Availability depends heavily on the user's country; many products are not offered to US persons or in some other regions.
Prices can drift from the underlying share when stock markets are closed, because tokens may trade while the reference price is frozen, and liquidity is thinner. Compare this with stock perpetuals, which give price exposure through derivatives rather than backed tokens.
Example
Suppose a tokenized share tracks a stock that closed at 200 USD on Friday. Over the weekend the stock market is closed, but the token trades and climbs to 206 USD, a 3% premium, after positive company news. On Monday the stock opens at 203 USD. If you had bought the token at 206, you would face a 3 USD loss per token once the price realigns with the stock, even though the stock itself rose 1.5%.
Common mistakes
- Assuming a tokenized stock gives the same voting and legal rights as owning the share.
- Ignoring premiums or discounts that appear outside stock market hours.
- Not checking who the issuer and custodian are and in which countries the product is allowed.
Learn and practise
FAQ
Are tokenized stocks real shares?
They are tokens backed by real shares held by a custodian, but you own a claim on the issuer, not the share itself. Rights such as voting usually do not pass through.
Can I trade tokenized stocks 24/7?
Many tokenized stocks trade around the clock on crypto platforms, but prices can move away from the stock when its market is closed.