What are your thoughts on tokenizing stocks?

[R1dwanRz]

Some people are exploring tokenized versions of traditional stocks and assets. From what I’ve seen, a number of them have been making steady profits, sometimes even more consistent than the memecoins gains we see in crypto.

These Ordi tokenized stocks let you trade hundreds of traditional stocks while staying fully in crypto, which seems like a simple way to access both worlds.

If you were also following TOKEN2049, you might have noticed that one of the exchanges there, Bitget shared some details about their Universal Exchange (UEX). It looks like they are trying to combine crypto, tokenized stocks and traditional assets into a single platform.

From what I’ve seen, you can trade on-chain DEX or even use futures, all within one app. I recently tried NVDA there, partly due to news about Elon Musk’s AI startup xAI raising more financing than planned with Nvidia investing as much as $2 billion tied to GPUs for xAI’s Colossus 2 data center. Made about +15% ROI on futures



Also the good thing is that syncs with the current stock market, as it even goes off on holidays etc.
So guys, do you think tokenized traditional stocks like this can really coexist with crypto and become a trend, that might change how people approach trading?

[markm]

In the Galactic Milieu we have a kind of asset that in the game we refer to as "shares", which in the game function much like what you are referring to as "stocks" because the game includes economic simulations thus it needs or wants a simulation of things along the lines of "stocks and/or shares".

One thing I have come to think is important about that particular type of asset is precisely the fact that its units are integers.

That is, there are no decimals, no fractions, other than by putting one or more into a "treasury" such as the "treasury" of a Corp of which "shares" are in turn issued or of a currency or other asset that is a "treasury-based" asset, an asset whose value per unit can be computed by dividing the total value of its "treasury" by the number of units issued.

The usefulness of an asset whose units are integers seems to be something related to such ideas as frequency and harmonics, in that purchases and sales of it are "quantised", one must buy or sell one entire "quanta" of it, one entire piece, at a time.

Being thusly "quantised" imparts qualities and possibly even functions that non-quantum assets might not necessarily intrinsically possess.

Thus the fact that it has seemed to me that at least part of the motivation for "tokenising" stocks-and-shares has been to dissolve that "quantumisation", that "normalisation" of what constitutes "one" in a system of units of account as it were, by allowing the purchase and sale of fractional "stocks and shares", might be "losing something" if only by eliminating the quantum nature of for example exactly what unit number of quanta of value it takes to accomplish something, because in some way the "amplitude" of each unit as distinct from the volume of units required to pile up a given "amplitude" could have interesting effects in some ranges of frequency in some financial circuitry so to speak...

I suppose the bottom line is I am wondering whether quantum finance might differ in useful or at least interesting ways from classical finance...


-MarkM-

[TastyChillySauce00]

So guys, do you think tokenized traditional stocks like this can really coexist with crypto and become a trend, that might change how people approach trading?

It can coexist together, it eliminates the need to use other app just to buy stocks, after all why shouldn't it coexist.
I bet that huge amount of crypto traders are also stock traders, so if they can do that in one same platform it's better.

But you know what even better? an onchain tokenized stock that I can hold in my self custody wallet e.g hardware wallet.
That's what i'm waiting for.

[hugeblack]

It's a scam; they're selling something they don't own.
This investment would make sense if Bitget owned the shares and then tokenized or sold them.
So what happens is that they sell you promises and there is no legal obligation to do so. Most likely it is illegal and no one will help you if you lose your investment.

[MAAManda]

So guys, do you think tokenized traditional stocks like this can really coexist with crypto and become a trend, that might change how people approach trading?

I don't think so, because the two instruments are completely different from every side, except economics (IMO). After all, stocks shouldn't be tokenized, as they should be accessed through official channels like reputable brokers, right?

I agree with what @hugeblack said, Bitget has no shares to tokenize, so it's just a baseless stock play. If this becomes a trend, I think the crypto industry will become more chaotic & lose its main essence .

[asriloni]

Tokenized stock can coexist with crypto, but i hate this idea. The stocks have been listing at the stock market.  I see no point to bring this stock to the crypto, which is only sucking the liquidity in the crypto market. That's they reason i don't like this idea. I hope it won't happen or crypto's liquidity will be drained slowly due to the stock gets tokenized.  We hve successfully couped volume from stock market, then moved to the crypto. Why do they need to tokenizing the stock. I hope those clueless developers will stop it.

[flapduck]

Most "tokenized stocks" today are IOUs, not equity. If you can't redeem a token 1:1 into shares in your name, receive dividends, and vote via the issuer's transfer agent, you're holding a crypto CFD whose price is synced to market hours by an oracle.

They can coexist in theory, but the only version worth touching is at the very least, a fully backed at a licensed custodian with audits and on-chain proof of reserves.

[Dunamisx]

Some people are exploring tokenized versions of traditional stocks and assets. From what I’ve seen, a number of them have been making steady profits, sometimes even more consistent than the memecoins gains we see in crypto.

Its not bad if we can also learn to explore a few among them and also take advantage, we have to ensure we already take such decision as a means of diversification and not to have all our investment on them, opportunities only comes by hearing of what comes more often to us and how we were able to translate on these as opportunity and be part of them.

[LayerzWallet]

tokenizing stocks can be very dodgy because of the rules around transfer agency - however tokens that track the price movement of stocks make sense

[markm]

Trying to directly track such price movement as your own price though would involve "pegging", which has its own problems in many cases.

Useful for gambling or for hedging but maybe harder to do than a simple "Chain-Traded Fund" (CTF?) with fixed number of units whose value per unit can be directly calculated as ((your oracle's claims about what the stocks in the "treasury" are worth in total) divided by (the number of units issued)), because that insulates any actual spot-market prices asked or offered from the "recommended retail price" indicated by the oracle-based calculated-from-treasury-contents value.

In other words leaving "value" as a "suggested price" rather than trying to "peg" spot-market-prices to purported "value" leaves it to the users of each venue of spot market how closely they choose to follow the suggestions of the oracle aka (presumably) the price of the underlying stock.


-MarkM-

[Webetcoins]

Not good. Stocks are the problems themselves, there is no point of making them tokenized as well, the point is the get away from them. If people are interested then they could do it, that is their decision and if they want to invest into these stuff then they can, but I will not and will stay away from it.

Plus you have to trust a company to do this, and why would I trust some centralized power to get it done? I will not, and looks like a bad decision all around. Hopefully it will get better and we will not be bothered that much.

[passwordnow]

So guys, do you think tokenized traditional stocks like this can really coexist with crypto and become a trend, that might change how people approach trading?

They can coexist but don't expect that they're going to be a big thing when the cryptos themselves are already being treated by the investors. There could be some changes in the way how we trade but it won't be that much IMO. But let's see if that will be another thing for the market to make as a trend. Hype is one thing for these and we'll see if they definitely have a space for the investors to look at.

[Abiky]

Not good. Stocks are the problems themselves, there is no point of making them tokenized as well, the point is the get away from them. If people are interested then they could do it, that is their decision and if they want to invest into these stuff then they can, but I will not and will stay away from it.

Plus you have to trust a company to do this, and why would I trust some centralized power to get it done? I will not, and looks like a bad decision all around. Hopefully it will get better and we will not be bothered that much.

BlackRock and other institutional investment firms are deeply interested in RWAs (Real World Assets). Tokenized stocks are a part of this. They're the way of the future. Eventually, the stocks market will integrate itself into the crypto market creating a unified experience. We'll probably see stocks issued across multiple chains with smart contract features (ETH, SOL, BSC/BNB, etc). I know many won't like it. Especially when this will make the crypto/Blockchain industry more centralized.

As for "trusting" a company, I'm sure most people won't have a problem with this. They already trust centralized exchanges with their crypto, so trusting a company with "tokenized stocks" shouldn't be much of an issue. This is just getting started. Who knows how will the industry evolve in the future?

[TastyChillySauce00]

Not good. Stocks are the problems themselves, there is no point of making them tokenized as well, the point is the get away from them. If people are interested then they could do it, that is their decision and if they want to invest into these stuff then they can, but I will not and will stay away from it.

Plus you have to trust a company to do this, and why would I trust some centralized power to get it done? I will not, and looks like a bad decision all around. Hopefully it will get better and we will not be bothered that much.

I really see no harm with the stock integration, the stock market is a huge market as well and the volatility is there, people always like volatility because they can make profit.

Tokenized form is just an RWA representation, I'm sure since we've come this far there's regulation about this, the mechanism basically just like stablecoin. Tokenized stock backed by real stock although you lose some benefit along the way.

[Altcoiner007]

Some people are exploring tokenized versions of traditional stocks and assets. From what I’ve seen, a number of them have been making steady profits, sometimes even more consistent than the memecoins gains we see in crypto.

Its not bad if we can also learn to explore a few among them and also take advantage, we have to ensure we already take such decision as a means of diversification and not to have all our investment on them, opportunities only comes by hearing of what comes more often to us and how we were able to translate on these as opportunity and be part of them.

Tokenized stocks in CEXs are rather a boost to crypto by attracting new capital not draining liquidity. They bridge TradFi & DeFi, offering fractional ownership & efficiency. For me, it's to embrace innovation that grows the ecosystem. Well, it's happening already.