Tokenization of U.S. Stocks: New Opportunities for Ordinary Investors

Introduction: Breaking Investment Barriers, US Stocks Are No Longer Out of Reach

In the past, ordinary people often faced numerous obstacles when investing in US stocks. High account opening funds, cumbersome processes, and time zone restrictions deterred many investors. However, with the development of US stock tokenization technology, this situation is changing. Through emerging Web3 technology, investing in US stocks has become simple and easy, allowing ordinary investors to participate in investments in top global companies with just a small amount of capital.

The tokenization of US stocks is reshaping the way ordinary people participate in global investments. This article will outline the operating methods, access thresholds, and potential risks, helping you avoid detours and seize opportunities.

New Opportunities Brought by Tokenization of US Stocks

24/7 trading, grasp the market pulse

Traditional US stock trading is limited by the opening hours of the US stock market, which is extremely unfriendly to non-US investors. The tokenization of US stocks adopts on-chain trading methods, enabling 24/7 uninterrupted trading, allowing investors to seize market opportunities at any time.

The investment threshold has been significantly lowered.

In the past, investing in stocks of well-known companies required large amounts of capital, while the tokenization of US stocks divides high-priced stocks into small shares, allowing investment with just a few dozen dollars, truly realizing inclusive finance.

Diversified investment channels

Traditional stock investments mainly rely on rising stock prices and dividends for profit. Tokenized assets can also participate in the DeFi ecosystem, such as lending and yield farming, providing investors with more diversified and efficient sources of returns.

Cross-border investment facilitation

For investors in many countries, traditional US stock investment involves the complex opening of foreign currency accounts and fund management. Tokenization of US stocks only requires a digital wallet to invest in top global companies, truly breaking through regional and capital restrictions, and simplifying the global asset allocation process.

Differences Between Traditional US Stocks and Tokenized US Stocks

Traditional US stocks: Clear shareholder rights

Traditional US stock investors directly hold company equity, possessing clear voting rights and dividend rights, and are protected by mature regulations and legal safeguards.

Tokenization of US stocks: flexible but with limited rights

Tokenization of US stock investors typically does not grant shareholder voting rights, and dividends may be distributed in the form of tokens, focusing more on the returns from price fluctuations. Investors should pay special attention to the platform's security, credibility, and regulatory compliance.

Beginner's Investment Guide: Avoiding the Potential Risks of Tokenization in US Stocks

Clearly define the actual rights of investment Tokens.

Before investing in tokenized US stocks for the first time, it is essential to understand the asset custodian behind the tokens, the nature of the assets, and whether they have specific rights such as dividends and voting rights.

values platform security and compliance

Choose a reputable and compliant platform to reduce the risk of encountering fraud or platform bankruptcy. Refer to community reviews, compliance documents, and regulatory information from multiple sources.

Attention to liquidity risk

Some token markets are relatively small, with insufficient trading volume, which may result in large bid-ask spreads. It is recommended to choose platforms with a large user base and sufficient liquidity.

Use leverage trading with caution

New investors should avoid blindly using high leverage to prevent unnecessary losses caused by amplified investment risks.

Rational investment, pursuing long-term stable returns

Currently, multiple platforms have launched related products in the market, each with its own characteristics in terms of compliance, trading experience, and participation thresholds. Some platforms support tokenization of popular private company's stocks, while others focus on synthetic asset models or real custodial security-type assets.

New investors are advised to start with platforms that offer a user-friendly trading experience and transparent information disclosure, focusing on the following points:

• Does the platform actually custody the underlying stocks?
• Whether it has legal authorization or is filed in a specific jurisdiction.
• Does it support small transactions
• Are there any withdrawal limits or lock-up mechanisms?

The product structures and risk exposures vary across different platforms, and investors should not make quick decisions based solely on product names. Starting with small, experience-based products is a relatively safe way to enter.

The tokenization of US stocks has opened the door to global capital markets for ordinary investors. Although investing has become more convenient, investors still need to remain rational, fully understand the risk and return characteristics of their investments, and manage risk properly.

Seize the opportunity and enter cautiously, making the tokenization of US stocks an important part of your prudent investment strategy.