What are your thoughts on tokenizing stocks?

[Odohu]

They are just shitcoins in simple terms. Why will someone even buy tokenized stocks when they can simply buy the real stocks? That idea of tokenized stock is generally pushed by people who simply want to enrich themselves through investors money because what they are offering them is fake and not the real stocks neither do they have any connection to the real stocks.  I will not advice anyone to patronize something like that when there is asset like Bitcoin and the other popular altcoins.

[nelson4lov]

Imo, it's just a fugazi. It's not real. Tokenized stocks is the same thing with Real World Assets (RWA). I still prefer the traditional way of trading stocks and I'm not convinced of the tokenized stocks I have seen especially on CEX and on solana dapps. It's simply not worth it for me especially since we have more than enough cryptos to trade so there's absolutely no reason why we need to tokenize stocks further.

[Abiky]

Imo, it's just a fugazi. It's not real. Tokenized stocks is the same thing with Real World Assets (RWA). I still prefer the traditional way of trading stocks and I'm not convinced of the tokenized stocks I have seen especially on CEX and on solana dapps. It's simply not worth it for me especially since we have more than enough cryptos to trade so there's absolutely no reason why we need to tokenize stocks further.

These days, anyone can create a token on the Blockchain and claim it's backed by real stocks. All without coding knowledge whatsoever. In order to build trust/confidence, tokenized stocks need to come from legitimate firms in the industry. Especially "Wall Street" giants such as BlackRock, Fidelity, and VanEck.

I think it's too early for tokenized stocks to gain traction. They're relatively new and unproven. Regulators will surely get their hands tied on this sooner or later. It's likely the US government will give the "green light" for companies to start issuing stocks on the Blockchain. But I can't say the same about other countries. This is just the beginning, so anything can happen in the future.

[nelson4lov]

~Snip

These days, anyone can create a token on the Blockchain and claim it's backed by real stocks. All without coding knowledge whatsoever. In order to build trust/confidence, tokenized stocks need to come from legitimate firms in the industry. Especially "Wall Street" giants such as BlackRock, Fidelity, and VanEck.

I think it's too early for tokenized stocks to gain traction. They're relatively new and unproven. Regulators will surely get their hands tied on this sooner or later. It's likely the US government will give the "green light" for companies to start issuing stocks on the Blockchain. But I can't say the same about other countries. This is just the beginning, so anything can happen in the future.

Yeah, good point. Even though any project creating tokens as tokenized stocks isn't incorporated in the US, I think they can still be penalized for listing US stocks. I think this was why companies like Coinbase and even Polymarket has fought extremely hard to get a footing in the US as they offer US markets.

I won't be surprised if the SEC decides to clamp down on tokenized stocks tomorrow, I won't be surprised. There was an incident recently one project tokenizing stocks on solana has a huge arbitrage on one of the popular stocks. Tokenized stocks are a very funny business.

[HawkTrader]

OP I can see you trade stocks on bitget. Heard thry got some challenge on these (yeah onchaun). Is it similar to previous ones? Because, I did win over $400 in the past from such chalkenge/competition and I'm looking forward to trying more if the rules suits me.

[Sioni]

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?

I think it basically depends on you and why you think you need to move. Sometimes change can be interesting and then theres the first timer luck, so trying out stock might be very good if you ask me, I see a lot of wealth opportunities around stock too, e.g on Biitget, you can trade stocks like $NVDA, $META, $TSLA etc, either long or short them depending on how well you know how to analyse the market or even your access to tools like GetAgent. You can earn decent profit from it, like just last week, with the help of GetAgent, I was able to analyse NVDA and saw that there will be an increase and yes there was, it rose from $193 to $208 and currently around $207. And there are rewards for even taking these stocks trades like you can earn $MSTR shares if you trade those stocks very well. All in all, I think the stock market is a decent place too, that is why I shared my own experience. Now you decide what to do yourself.

[Abiky]

Yeah, good point. Even though any project creating tokens as tokenized stocks isn't incorporated in the US, I think they can still be penalized for listing US stocks. I think this was why companies like Coinbase and even Polymarket has fought extremely hard to get a footing in the US as they offer US markets.

I won't be surprised if the SEC decides to clamp down on tokenized stocks tomorrow, I won't be surprised. There was an incident recently one project tokenizing stocks on solana has a huge arbitrage on one of the popular stocks. Tokenized stocks are a very funny business.

If they aren't incorporated in the US, how can they be subject to US regulations? As far as I know, stocks from companies outside the US are outside of the country's jurisdiction. But I'm no law expert, so please correct me if I'm wrong.

The tokenized stocks situation looks similar to PoS coins (in terms of regulations). Remember when former SEC chairman Gary Gensler used to call every PoS coin a "security"? The same can happen with these so-called "tokenized stocks". They might be heavily-scrutinized by regulators as they're new and unproven. At least, within the early days. Trump's administration is pro-crypto, so it's likely the government will go easy on tokenized stocks for the next 4 years. What could go wrong?