What Tokenized Stocks Are
A tokenized stock is a token on a blockchain that tracks the price of a real share of a US stock or ETF. Each token is issued by a company (the issuer) that holds the real shares with a custodian.
How they compare with owning shares at a broker
| Shares at a broker | Tokenized stocks | |
|---|---|---|
| Where they live | Your brokerage account | Your own wallet on Solana |
| Trading hours | Exchange hours | Often around the clock on weekdays, depending on the issuer |
| Fractions | Depends on the broker | Fractions of a share are normal |
| Moving them | Transfer between brokers, often slow | Send to other Solana wallets in seconds, subject to the issuer's rules |
| Using them as collateral | Margin loan from your broker, with interest | Borrow on Spout at 0% |
| Your rights | Set by the company and your broker's account terms | Set by the issuer's terms |
What to know before you buy
- Your rights come from the issuer
- Depending on the issuer, a token may give you a claim on the issuer rather than direct ownership of the share. Dividends, voting and redemption follow the issuer's terms. Read them. For collateral, see Dividends, Splits and Corporate Actions.
- Prices track the real share
- When the US market is closed, onchain prices can move away from where the stock opens.
- The issuer matters
- A token is only as sound as its issuer and the custodian holding the shares. Spout accepts tokens only from approved issuers. See How Issuers Back Their Tokens and Which Tokens Spout Accepts.