Tokenized Stocks: A Step Toward Breaking Barriers?

[amosar7]

I have always been interested in both crypto and stocks but honestly the traditional stock route has always felt like a wall I could not climb. Brokerage accounts, endless KYC, regional restrictions, and the sense that unless you had big capital you were shut out. Watching companies like Tesla and Nvidia skyrocket only made that frustration sharper.

So it caught my eye when I came across the idea of trading tokenized versions of stocks directly with USDT similar to how we already approach crypto futures. Suddenly exposure to Web2 giants like AAPL or TSLA does not require jumping through brokerage hoops or starting with huge sums.

I have not jumped in yet since I do not trade stocks heavily but it does feel like an interesting shift. It blends two worlds that used to be totally separate and lowers the entry point for people who were never going to open a traditional brokerage account in the first place.

I am curious how others here see this. Is tokenized access to equities something that could actually reshape retail investing or just another experiment that fades out once the hype dies?

[Bitcoin_Arena]

I think those tokenized stocks or commodities have been there before with certain exchanges including FTX but for some reason, they were never so popular. So this is not the first time we are seeing them.

One thing I know is it's hard to tell if they will last long like the value of underlying traditional asset they are representing. I mean, for example, once FTX disappeared, so did the tokenized stocks. This is not something good for those thinking of long term. We all know stocks take years to make realistic gains, even over a decade. Can this tokens last that long?

[JeffBrad12]

I think those tokenized stocks or commodities have been there before with certain exchanges including FTX but for some reason, they were never so popular. So this is not the first time we are seeing them.

One thing I know is it's hard to tell if they will last long like the value of underlying traditional asset they are representing. I mean, for example, once FTX disappeared, so did the tokenized stocks. This is not something good for those thinking of long term. We all know stocks take years to make realistic gains, even over a decade. Can this tokens last that long?

Yeah that's the problem. Tokenized stock still seems very unclear on how they handle such thing. I bet even the regulation is still lacking in this regard.There's no way i'm buying tokenized stock for long term holding issued by exchange from some random obscure place.

It could be a good way to break barrier between capital from tradfi and defi although we need better regulation in this regard. Definitely not buying until there's clear regulation about this.

[slaman29]

I have always been interested in both crypto and stocks but honestly the traditional stock route has always felt like a wall I could not climb. Brokerage accounts, endless KYC, regional restrictions, and the sense that unless you had big capital you were shut out. Watching companies like Tesla and Nvidia skyrocket only made that frustration sharper.

So it caught my eye when I came across the idea of trading tokenized versions of stocks directly with USDT similar to how we already approach crypto futures. Suddenly exposure to Web2 giants like AAPL or TSLA does not require jumping through brokerage hoops or starting with huge sums.

I have not jumped in yet since I do not trade stocks heavily but it does feel like an interesting shift. It blends two worlds that used to be totally separate and lowers the entry point for people who were never going to open a traditional brokerage account in the first place.

I am curious how others here see this. Is tokenized access to equities something that could actually reshape retail investing or just another experiment that fades out once the hype dies?

Man, they had those kinds of stocks 15 years ago on china apps, I was playing some of them alongside forex, we talking about DJ and even smaller nikkei stocks at the time.

No KYC, no restrictions, and leverage you can dream about they give.

I don't doubt they are still existing around.

But if the app runs? Or some 'unexplained technical error' happens? You have zero law to protect you.

Trust me if you want to buy stocks, tokenized or whatever, you want regulations and KYC to protect your ass. And therefore people will still go to RobinHood for this kind of thing. Or more sophisticated investors just go for ETF baskets overing all your TSLA and AAPL etc.

[Moreno233]

I will not put my money on tokenized stocks because it is similar to locking my money in a centralized exchange, which is very risky to do. Instead of investing in tokenized stocks, it is even better to buy the real stocks since that have some level of security and can easily be liquidated when the need arises. In cryptocurrency, I rather buy Bitcoin and the other popular altcoins that experiment with something I'm not familiar with to avoid loosing my money.

[nelson4lov]

I see stocks being listed on MEXC futures and the leverage usually ranges from 5x and the max I've seen so far is 10x leverage on 1-2 stocks. However, I don't like their approach because the market there follows the official stock market schedule so it means markets are unavailable on weekend. Even if you just want to place a pending order that could get triggered when the market finally opens up, you can't and I find that very frustrating


If Blockchain and crypto is suppose to remove restrictions, then that's not the best implementation for tokenized stocks with leverage.

[shinratensei_]

Sounds like dystopian scenario.
Tokenized this and tokenized that, you don't even know if you're really trading stock or just a contract here.

At this point just use the real stock trading app instead of tokenized stock through crypto exchange. Some of these stock trading app already provides crypto anyway.

[davis196]

I have always been interested in both crypto and stocks but honestly the traditional stock route has always felt like a wall I could not climb. Brokerage accounts, endless KYC, regional restrictions, and the sense that unless you had big capital you were shut out. Watching companies like Tesla and Nvidia skyrocket only made that frustration sharper.

So it caught my eye when I came across the idea of trading tokenized versions of stocks directly with USDT similar to how we already approach crypto futures. Suddenly exposure to Web2 giants like AAPL or TSLA does not require jumping through brokerage hoops or starting with huge sums.

I have not jumped in yet since I do not trade stocks heavily but it does feel like an interesting shift. It blends two worlds that used to be totally separate and lowers the entry point for people who were never going to open a traditional brokerage account in the first place.

I am curious how others here see this. Is tokenized access to equities something that could actually reshape retail investing or just another experiment that fades out once the hype dies?

So you want to trade stocks but without all the KYC procedures? Not going to happen, if you ask me.
There are platforms like Trading212 and Robinhood(I don't recommend them, I just use them as an example), that make retail investing really easy(but you simply can't avoid KYC verification). I also don't believe that the stocks and crypto markets can be somewhat "united" by the process of "tokenization".
"Tokenized stocks" or "tokenized access" sounds like a scam to me. You aren't buying the actual stock, you are buying a token, which represents the stock. ETFs are kinda the same thing, you don't need tokenized assets, when you already have ETFs. I don't believe that all the brokers are going to give up their sweet business. Nobody would be able to just bypass the brokerage firms.

[cryptoaddictchie]

I am curious how others here see this. Is tokenized access to equities something that could actually reshape retail investing or just another experiment that fades out once the hype dies?

Tokenized stocks really lower the barriers for retail and no brokerage, no big capital, just stablecoins. It feels like a natural bridge between TradFi and crypto. The challenge will be regulation and liquidity, but if those hold up, it could reshape access to equities rather than fade as just another experiment. But seriously this isnt a new idea, it has been discussed since then as any stocks trader are rooting now with crypto and changing the game a bit would be positive incline by retailers and whales on stock market.

[masulum]

Besides liquidity, real-time asset verification is crucial, and this must be developed by the company itself. let say, value of ownership stock data from official institutions can be automatically pulled into the blockchain by the system and removed the traditional stock ownership value from their traditional data . This way, anyone can directly verify the 1:1 collateral of the token at any time, without relying on manual audit reports and preventing double ownership. The process is completely transparent and anti-manipulation.

[el kaka22]

While this sounds like an idea that can be done. I am not entirely sure if it will be that easy, it is going to be a very tough one to get people to accept. Obviously it is not impossible, it can still happen, we just need to make sure that we are seeing it all through easily. If we can do that, then we should be making some good returns and not that crazy losses.

However, the funding required to make something like this and also get it popular and used by enough people to make this feasible? That is a lot, sure if blackrock or whoever that big wants to do this, then yeah they can do it, but that doesn't mean it is going to be easy, it will take a long time, and it should not be easy to handle for any of us, so they need to step up and do it.

[Webetcoins]

I have not jumped in yet since I do not trade stocks heavily but it does feel like an interesting shift. It blends two worlds that used to be totally separate and lowers the entry point for people who were never going to open a traditional brokerage account in the first place.

I am curious how others here see this. Is tokenized access to equities something that could actually reshape retail investing or just another experiment that fades out once the hype dies?

There are multiple platforms where you can trade both cryptos and stocks. I've not seen much pairs of stocks/cryptos but would be interesting to deal with e.g AAPL/USDT. But anytime a stock is involved, there will be heavy documentation, brokerage accounts & also regional restrictions. Stocks are governed by government bodies and they will not just let anyone trade in without getting proper information about the trader.

So it the restrictions remains the same than there is no benefit in trading with tokenized stocks. Instead we can simple continue trading stocks & cryptos separately. It's good to have both in our portfolio.

[joniboini]

While this sounds like an idea that can be done. I am not entirely sure if it will be that easy, it is going to be a very tough one to get people to accept.

The biggest barrier isn't the people/retail traders, it is the government. I'm sure people will happily buy tokens if it means they can trade them with real stocks. The problem is that the company will have to track each one of them and force people to KYC due to regulations, as mentioned above. You also need to make sure the broker/platform where you trade these tokenized stocks can be trusted, and so on.

I feel like I'd rather focus on crypto trading and hone my skills if stocks aren't accessible to me. History told us that we can make a lot of money (granted if we're lucky) in crypto trading too. CMIIW.