Tokenised equities
Tokenised equities (or tokenized equities) are digital tokens on a blockchain that represent ownership rights—or economic exposure—to shares in a company, whether public or private, enabling fractional ownership and on-chain transfer.
✦ Key Insight
They bridge traditional finance and crypto, offering 24/7 trading, fractional access, faster settlement, and potential DeFi composability. Traders gain new ways to gain equity exposure without conventional brokers, subject to regulatory constraints.
✕ Common Misconceptions
Assuming all tokenised equities confer full legal shareholder rights; ignoring jurisdiction-specific securities laws; treating them as unregulated crypto tokens.
Detailed Explanation
How It Works: Two main models: (1) wrapped/custodial—underlying shares are held by a licensed custodian and tokens are issued 1:1; (2) native— the equity itself is issued directly as a security token. Smart contracts can automate dividends, voting, or compliance transfers. Issuance and trading usually require regulatory approval.
FAQs:
Same as stocks?
They represent equity but legal rights depend on the structure and jurisdiction.
Tradeable on DEXs?
Sometimes, but often restricted to compliant venues.
Dividends?
Possible via smart-contract distribution if structured that way.