Tokenized stocks

A tokenized stock lets investors hold exposure to a company such as Apple or Tesla in a crypto wallet and trade it around the clock. In the most common model, a regulated issuer buys the real shares, keeps them with a custodian and mints one token per share or fraction, redeeming tokens for cash or shares on request. Other products are debt instruments or derivatives that only track the price.

Tokenized equities are a fast-growing part of real-world asset tokenization, offered through crypto exchanges, wallets and blockchains such as Solana, Ethereum and its layer 2s. They promise fractional ownership, 24/7 trading, faster settlement and use as collateral in DeFi, and they open US stocks to investors abroad.

What a holder actually owns varies widely. Many tokens give no voting rights, may not pass through dividends directly and can be redeemed only by approved participants. Prices can drift from the stock when markets are closed. Issuers usually restrict sales to US persons, and securities law, not crypto law, governs most of these products.