Thoughts on tokenizing stocks?

A lot of folks are looking into tokenized versions of regular stocks and assets. From what I’ve noticed, some of these have been pulling in steady profits, sometimes even more reliable than the crazy gains we see with memecoins in the crypto space. These Ordi tokenized stocks let you trade a bunch of traditional stocks while staying in the crypto vibe, which seems like an easy way to get into both sides. If anyone caught TOKEN2049, you might’ve seen Bitget dropping some info about their Universal Exchange (UEX). They’re trying to mix crypto, tokenized stocks, and classic assets into one platform. From what I gathered, you can trade on a DEX or even mess around with futures, all in one app. I recently gave NVDA a shot, especially after hearing that Elon Musk’s AI startup xAI got more funding than they expected, with Nvidia pitching in around $2 billion for GPUs tied to xAI’s Colossus 2 data center. I ended up scoring about +15% ROI on futures. Plus, the cool part is that it syncs up with the current stock market, even operating during holidays and stuff. So, what do you all think? Can these tokenized traditional stocks actually blend with crypto and kick off a trend that changes how we trade?

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-

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.

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.

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 .

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.

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.

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.

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

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-

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.

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.

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?

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.

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.

The thing is, will CEXs adhere to the same level of regulations as traditional brokerage firms? Because if they don't, what guarantees will investors have that their capital is safe from harm's way? I mean, RWAs are a nice concept and all. But they lack the level of confidence needed to thrive. They're relatively new and unproven. Not to mention, transitioning stocks into the Blockchain will make crypto more centralized. With a giant such as BlackRock interested in this, we should expect the worse. We'll see what happens in the long run.

But isn't a thing like this have existed already on the past? I've heard a lot of tokenized stuff though before, and I am pretty sure that among it is these tokenized stocks. But I think they aren't only that trendy as the other, I guess it is because there is no real or big change at them, apart from the fact that they are now digitalized or tokenized. Also stocks investors are mostly mature people and they can prefer to invest in the old physical way. It is still a good thing for us Gen Z and Millennials to be more closer to the stocks. It gives us more and a better option to diversify our funds with, as we know that stocks are a different kind of breed already and then they are also known to be much stable than the cryptos.

I believe it is a new market with lot of potential if it is done properly, in my opinion. But whoever offers those products need to be careful, as regulators are going to step in and try to take down those products, as they are not registered with the SEC and other regulatory bodies on their respective markets. It would be ideal if these tokens were issued by companies themselves and people did not have to trust of the mechanism being implemented by exchanges or DAOs to keep the peg of those tokens.  In the worst case scenario, thousands of people could lose all their money if the peg is lost and there is no liquidity left for people to sell and buy at the same price one could find in traditional markets, like those in wall street.

Companies themselves issuing tokenized stocks would surely increase confidence/trust among investors and traders alike. Regulators will have the final say whenever this becomes a reality or not. I'm pretty sure they will come up with restrictions/limitations out of skepticism. At least, in countries that aren't crypto-friendly. In the US, companies will have no problem doing this. Only until 2028. If another administration comes in (from the rival political party), it will be game over for good. This industry is relatively new and unproven. I'd expect bumps further down the road. Let's just hope these tokenized stocks don't mess up the crypto market, or it will be the end of an era. Who knows what will happen in the future?

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.