Can stock tokens generate real stock returns? An in-depth analysis of the investment logic behind tokenized stocks

Tokenized stocks are becoming one of the fastest-growing sectors in the crypto asset space. As of June 2026, the market capitalization of tokenized stocks has surged from $2.23 billion at the start of the year to $5.5 billion, a 147% increase in just six months. The overall growth of active tokenized RWA (Real-World Assets) has been approximately 589% compared to early 2025, with public stock tokenization growth reaching 422%.

Against the backdrop of rapid market expansion, a core question has always troubled investors: What is the future of stock tokens? Can buying stock tokens yield the same returns as holding real stocks?

The essence of tokenized stocks: Price exposure or true ownership?

To understand whether stock tokens can generate real stock returns, we first need to clarify a fundamental question—what exactly are stock tokens?

Tokenized stocks are digital assets that map the value of traditional stocks via blockchain technology. They are usually held by regulated custodians who own the actual stocks, and corresponding tokens are issued on the blockchain. Holders can trade, transfer, or combine these assets on-chain, thereby gaining market exposure linked to the stock’s price performance.

However, stocks themselves are not a single “tradeable price,” but a bundle of rights. In traditional finance, one share of stock includes at least: economic rights (capital gains from stock price appreciation and dividends), legal rights (shareholder identity and legal protections), governance rights (voting and decision-making), and liquidation priority rights.

The key question is: when a stock is “tokenized,” are these rights fully transferred onto the chain?

The answer is no. Currently, most so-called tokenized stocks in the market are not direct on-chain representations of stock rights. Instead, they are closer to one of three forms: tracking the stock price, synthetic exposure to stock returns, or indirect claims on custodial stocks. In other words, what users typically receive is not the “stock” itself, but a financial instrument highly correlated with the stock’s price.

In a custodial model, the issuer first purchases real stocks and holds them with a regulated custodian, then issues tokens proportionally on-chain. Buying these tokens does not mean being added to the company’s shareholder register; instead, it’s a token representing a claim to the issuer. Economically, you are exposed to the stock’s price; legally, you have a relationship with the issuer, not directly with the listed company.

Can stock tokens generate real stock returns?

This is the most concerned question for investors. The answer depends on your definition of “returns.”

Capital gains: Yes

The price of stock tokens is highly correlated with the underlying stock. When Apple’s stock price rises, the corresponding Apple stock token price usually also increases. Investors can realize capital gains by buying low and selling high, which is similar to the experience of holding real stocks at the price level.

Dividends: Varies by product

In custodial models, corporate actions are first processed at the custodian level and then reflected on-chain. The custodian, as a legal shareholder, pays dividends to the platform, which then distributes dividends to token holders, usually in stablecoins. Stock dividends are handled by adjusting the token supply.

However, different platforms’ stock token products vary significantly in dividend handling. Gate’s stock tokens are explicitly defined as “on-chain derivative assets linked to stock prices, not real shares issued by the company,” so holders do not have voting rights, dividend rights, or participation in corporate governance, and stock tokens do not generate dividends.

This means that, on Gate, buying stock tokens gives you investment returns from price movements, not traditional shareholder rights. Cash dividends are not paid out in USDT or other forms to token holders.

Voting and governance rights: Usually none

In most stock token products, holders cannot participate in company voting and are not legally considered shareholders. Although SEC’s innovation exemption framework requires platforms to provide core shareholder rights (such as dividends or voting), otherwise they risk losing listing eligibility. Currently, this framework remains in a regulatory sandbox (12 to 36 months), and actual implementation will take time.

Stock splits and mergers: Usually mappable

Stock splits and reverse splits are typically handled by adjusting the token supply, ensuring on-chain representation continues to match the underlying stock. Whether tokens undergo splits depends on the issuer’s decision based on the stock’s split events.

Unique advantages of stock tokens

Despite lacking shareholder rights, stock tokens still possess unique value that traditional stocks cannot replace:

24/7 trading. Stock tokens are traded on blockchain or crypto exchanges, not limited by traditional market hours. In contrast, US stock markets operate roughly from 9:30 am to 4:00 pm Eastern Time, five days a week, totaling about 6.5 hours daily.

Instant settlement. Traditional stock markets use T+1 settlement (changing from T+2 to T+1 starting May 2024), while blockchain systems can achieve near-instant settlement (T-instant).

Fragmented investment. Thanks to blockchain’s divisibility, investors can buy fractional parts of stock tokens with very low capital. For example, Tesla’s stock price as of June 2026 is about $396 per share. Traditional brokerages usually require purchasing a whole share, but with stock tokens, users can participate with a smaller amount.

Global accessibility. Traditional stock markets are geographically limited; investors typically need securities accounts in specific countries or regions. Stock tokens eliminate these account opening barriers and cross-border capital flow restrictions.

Market outlook: from $5.5 billion to $50 trillion?

The market prospects for tokenized stocks are gaining increasing recognition from institutions.

In terms of market size, the market cap of tokenized stocks has grown from $2.23 billion at the start of 2026 to $5.5 billion. In trading volume, by early 2026, Gate’s stock token section had accumulated over $140 billion in total trading volume, with a monthly market share of 89.1%. By early June 2026, Gate’s daily stock trading volume surged to nearly $30 million.

On the regulatory front, major breakthroughs occurred in 2026. Nasdaq received SEC approval in March 2026 to allow certain securities to be traded and settled in tokenized form on its marketplace. The New York Stock Exchange announced in January 2026 that it is developing a blockchain-based tokenized securities trading platform. SEC Chair Paul Atkins announced plans to issue an “innovation exemption” rule to permit legal trading of tokenized stocks in the US.

Industry forecasts from Securitize CEO Carlos Domingo predict that tokenized stocks have the potential to unlock a $50 trillion RWA market—by migrating just 2-3% of the global $150 trillion stock and ETF markets onto the chain.

However, it’s important to note that market prospects do not equate to investment returns. The growth of the tokenized stock market mainly reflects the expansion of this asset class, not guarantees of individual investment gains.

Risk analysis: four dimensions investors should watch

Structural risk: third-party issuer credit dependence

Tokenized stocks are usually issued by third parties. Investors’ trust is not solely in blockchain technology but in the credit, compliance, and legal structure of the custodian. Without cooperation from the listed company, there’s no guarantee that the intermediary holds the actual stocks in full. This inherent structural risk applies to all third-party packaged products.

Legal risk: rights’ uncertainty

In July 2025, the SEC explicitly stated: “While blockchain technology is powerful, it cannot magically change the legal nature of underlying assets.” Tokenization does not alter the classification of securities—tokenized stocks are still securities and subject to existing securities laws. However, regulatory attitudes vary across jurisdictions, and legal attributes can differ significantly.

Liquidity risk: limited market depth

Although Gate’s stock token section has substantial cumulative trading volume, liquidity for individual tokens may still be less than traditional stock markets. Large buy or sell orders could face slippage risks.

Platform risk: product design differences

Different platforms’ stock token products vary significantly in asset attributes, dividend handling, redemption mechanisms, etc. Investors should carefully read each platform’s documentation to understand what they are actually holding.

Summary

The outlook for stock tokens is generally positive. The market size grew from $2.23 billion to $5.5 billion in just six months; regulatory frameworks are gradually becoming clearer, with Nasdaq, NYSE, and others entering the space; trading volumes on platforms like Gate continue to rise. These signals indicate that tokenized stocks are moving from experimental fringe to an integral part of mainstream financial infrastructure.

But whether stock tokens can “regularly generate returns comparable to buying real stocks” is not a simple yes-or-no question.

At the capital gains level—yes. The price of stock tokens is highly correlated with the underlying stock, allowing investors to profit from price movements.

At the shareholder rights level—generally no. Most stock tokens do not grant voting, dividends, or governance participation. On Gate, stock tokens are explicitly defined as on-chain derivatives, not real shares, and do not produce dividends.

In other words, stock tokens offer “price exposure,” not “shareholder identity.” Investors gain financial exposure to stock price fluctuations, not the full bundle of traditional shareholder rights.

Therefore, when choosing to invest in stock tokens, investors should clearly understand their goals: if they seek 24/7 trading, instant settlement, and fractional investment, stock tokens are attractive tools; if they desire full shareholder rights (dividends, voting, legal protections), traditional stocks remain the better choice.