What Are Tokenized Stocks?
Tokenized stocks are blockchain tokens that represent ownership of (or exposure to) a real-world share of a publicly listed company such as Tesla, Apple, or Nvidia. Each token is designed to track the price of the underlying stock, letting you hold "a piece of Apple" in a crypto wallet instead of a brokerage account. On 711BTC you can browse them in our tokenized stock listings and compare providers under Exchanges.
How Tokenized Stocks Work
The core idea is tokenization: a regulated issuer holds the actual share in custody and mints a corresponding digital token on a blockchain (typically Ethereum or a dedicated chain). The token's value is meant to mirror the underlying share through custody, redemption, or arbitrage. Two common models exist:
- Asset-backed: the issuer holds the real share 1:1 and the token is redeemable for it.
- Synthetic / derivative: the token tracks the price via a swap or contract, without holding the underlying share.
The difference matters for your rights — see our risk explainer.
Tokenized Stocks vs Traditional Stocks
Both aim to give you exposure to a company's performance, but they differ in custody, trading hours, and shareholder rights. We break it down in Tokenized vs Traditional Stocks.
Tokenized Stocks vs Crypto
A tokenized stock is not a cryptocurrency like Bitcoin. It is a claim on a traditional equity, so its price follows the stock market, not the crypto market. Confused by the categories? Our bStocks vs xStocks guide explains how 711BTC labels them.
Regulation Around the World
Legality varies sharply by jurisdiction — permitted in some regions under frameworks like the EU's MiCA, restricted in others. Read the details in Is Tokenized Stock Legal?
How to Buy Tokenized Stocks
You typically need an account on a platform that offers them, plus a compatible wallet. Our step-by-step guide walks through it and links to vetted exchanges.
Risks to Know
Counterparty risk, weak shareholder rights, liquidity gaps, and regulatory uncertainty are the big ones. Start with Tokenized Stocks Risks Explained.
⚠️ Disclaimer: This article is for general information only and is not financial, legal, or investment advice. Tokenized stocks carry significant risk, including the loss of principal. Always do your own research and consult a licensed professional before making any decision.