The Simple Definition
A tokenized stock is a digital token on a blockchain whose value is designed to follow a real, listed company's share price. Think of it as a blockchain wrapper around a traditional equity like Tesla or Apple.
What You Actually Own
This depends on the model:
- Asset-backed: a regulated custodian holds the real share; your token is a claim on it.
- Synthetic: no real share is held; the token tracks price through a financial contract.
Only the asset-backed model gives you something close to real ownership. Our comparison guide covers the practical differences.
Why People Use Them
Tokenized stocks can offer fractional access, longer trading hours, and settlement in crypto. But they come with trade-offs — see the full guide and the risks.
⚠️ 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.