Tokenization of US Stocks: A Financial Innovation of a New Era or Old Wine in a New Bottle?

Recently, the launch of tokenization products in the US stock market has attracted widespread attention from both the cryptocurrency community and the traditional finance sector. Platforms like Robinhood, Kraken, and Bybit have successively launched related products, igniting a wave of enthusiasm. So, is this a brand new financial innovation, or a repackaging of old concepts? Let us explore this phenomenon from multiple angles.

US Stock Tokenization: New Narrative or Old Wine in a New Bottle?

The tokenization of US stocks essentially belongs to a branch of RWA( real-world assets) and can be seen as a continuation and development of STO( security token offerings). As early as 2017-2018, there were attempts at STO in the industry, such as putting gold mine revenue rights on-chain. The concept of RWA has emerged since last year, and with the regulatory environment gradually loosening, traditional enterprises hope to achieve capital appreciation by participating on-chain.

Compared to traditional US stocks, tokenized stocks have advantages such as 24/7 trading, low entry barriers, and strong liquidity. It lowers the trading threshold and supports 7×24 hour trading, making it particularly suitable for seizing investment opportunities arising from sudden events. However, one must also be wary of the manipulation risks that may arise from excessive liquidity.

From a technical perspective, the tokenization of US stocks is the application of asset securitization ( ABS ) on the blockchain, similar to the MBS ( mortgage-backed securities ) during the 2008 financial crisis. Nowadays, with the maturity of technology and regulation, some licensed institutions have launched more compliant products, such as Robinhood issuing on Arbitrum L2 and emphasizing compliance and custody.

The Difference Between Tokenized Stocks and Traditional Stocks

Tokenization of stocks is essentially a price certificate of an on-chain smart contract, rather than real stocks. Holders cannot enjoy the rights of traditional shareholders( such as voting rights and corporate governance rights), and can only receive economic benefits( such as dividends). The specific method of dividend distribution varies by issuer; some automatically convert dividends into Tokens, while others distribute dividends directly.

Compared to traditional stocks, tokenized stocks have three main differences:

1. No shareholder identity: Users only hold on-chain certificates, with no actual shareholder rights.
2. Price mapping attribute: similar to derivatives, only tracks price, no voting or governance rights.
3. High liquidity and low threshold: supports trading around the clock, more flexible and convenient.

In terms of compliance, issuers must obtain relevant financial licenses to ensure transparent asset custody and thorough third-party audits. Regulatory focus includes transparency, asset security, and proof of reserves.

Risks and Opportunities of Tokenization of Unlisted Stocks

The tokenization of unlisted stocks ( such as SpaceX and OpenAI ) has sparked heated discussions, but there are also significant risks involved:

1. Legal compliance and governance conflicts: Relevant companies may not recognize tokenization actions, leading to unclear legal status.
2. Information asymmetry: The token may represent fund LP shares, and the specific information is opaque.
3. Lack of transparency in pricing: Insufficient liquidity and imperfect pricing mechanisms make it difficult to protect investors' rights.

The greatest risk lies in the inability to verify authenticity. For example, OpenAI publicly denied that the tokens issued by a certain platform are its stocks. In the event of a dispute, it is extremely difficult for investors to defend their rights.

However, if the company cooperates with (, such as early founders pledging shares and notarizing ), tokenization can also provide startups with Pre-IPO pricing and cash flow recovery opportunities, reducing the risk of insufficient R&D funding.

Considerations for Choosing an Issuance Chain

Different platforms choose different issuance chains, mainly based on the following factors:

1. User base and transaction speed
2. DeFi Ecosystem Maturity
3. Gas Fees
4. Contract Customization
5. Business Partnership

For example, Solana is favored due to its large user base, fast transaction speeds, and mature DeFi ecosystem. Arbitrum may be related to Robinhood's long-term planning (, such as building its own L2). The choice often involves both technical and business considerations.

The Long-term Value of Tokenization in US Stocks

The tokenization of US stocks has long-term value, similar to the transformation of stocks from offline to the internet. The decentralization and transparency of Web3 are expected to reduce trust costs, supporting around-the-clock trading and rapid pricing. Compared to ABS during the 2008 financial crisis, tokenization has made significant progress in transparency, regulation, risk control, and technology.

However, the current market participation is still relatively low, with issues such as high slippage and insufficient liquidity. Long-term development is promising, but short-term observation is still needed.

Other Tokenization Directions Worth Noting

In addition to stocks, the tokenization potential of copyright-based assets is enormous, such as music, film and television, books, and website advertising revenue sharing. This model is transparent and efficient, making it particularly suitable for content creators to quickly recover their investments and achieve long-term profit distribution.

In addition, some traditional industries such as tea cultivation and real estate development are also exploring financing through RWA. However, such projects often face practical difficulties such as regulation and liquidity.

Overall, the tokenization of US stocks, as a branch of RWA, is connecting the Web2 and Web3 worlds, lowering transaction thresholds and costs. Although there are still many challenges at present, in the long run, RWA is expected to reshape the financial and content industries. Achieving this vision requires the joint maturation of technology, regulation, and the market.