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Tokenized stocks
Tokenized stocks are typically built following well-established token standards like ERC-20 on the Ethereum blockchain. This adherence to token standards ensures that these tokens can be seamlessly used across various platforms and wallets. They are readily available for purchase, sale, and trading on cryptocurrency exchanges or specialized platforms that specifically support them.
Investing in tokenized stocks comes with several advantages.
- First: it enhances liquidity, as these digital representations can be easily bought or sold at any time. The 24/7 trading availability allows investors to react quickly to market changes and take advantage of investment opportunities. Additionally, tokenized stocks often involve lower transaction costs compared to traditional stock trading. Furthermore, fractional ownership is made possible, enabling investors to own smaller portions of high-value stocks that were previously out of reach.
- Moreover: tokenized stocks offer global market access, allowing investors from different parts of the world to participate in trading without geographical limitations. The decentralized nature of blockchain technology eliminates the need for intermediaries, streamlining the trading process and reducing associated fees.
Overall, tokenized stocks provide increased flexibility, accessibility, and efficiency in the trading of traditional stocks, opening up new possibilities for investors in the evolving landscape of digital assets.