Tokenized equity refers to the creation and issuance of digital tokens or "coins," representing equity shares in a corporation or organization. Stock tokens are not cryptocurrencies but an asset which is tokenized on the blockchain.
With the growing adoption of blockchain, businesses find it convenient to adapt to the digitized crypto-version of equity shares. Tokenized equity is emerging as a convenient way to raise capital in which a business issues shares in the form of digital assets such as crypto coins or tokens.
Tokenized Stocks is a synthetic version of actual stock. Still, since they’re a digital asset, you can buy and sell them from pretty much anywhere globally – just like you would any cryptocurrency.
Tokenized Stocks have four very unique properties that make them different (and, we believe, better) than regular stocks:
Accessible: For many countries we serve, investors can’t easily purchase stocks like Apple, Tesla, etc. Tokenized Stocks give you a legal way to access the US stock market to buy and sell US stocks.
Divisible: Because the shares are tokenized, buying a fractionalized portion of the stock is possible. For example, Amazon Stock (AMZN) is over $3000 per share at the beginning of 2021, but now you can buy a tenth of a share for around $300 or any amount your budget allows.
Always On: Traditional stocks on the US stock market only trade between 9:30 am – 4:00 pm every day. Because these assets are tokenized, they can be traded 24 hours a day.
Stock tokens are fully backed on the underlying market, and holders are the underlying stock economics beneficiaries. Thus, token holders will enjoy certain shareholder benefits. Holders are entitled to dividends, which will be passed on to users automatically. Other corporate actions such as stock splits are supported as well. In such a scenario, we will automatically issue tokens representing any new shares as required. All corporate activities will be notified to clients by email in advance.
However, the tokens confer no legal rights in and of themselves. Stock token holders are not entitled to legal or voting rights. Additionally, token holders are not eligible to attend the company’s AGM.