U.S. stocks X Crypto Assets = the next wealth secret?

robot
Abstract generation in progress

What is "U.S. stock tokenization"?

In simple terms, the tokenization of US stocks refers to turning traditional stocks like Tesla, Apple, and Microsoft into "Tokens on the blockchain." These Tokens are not fake; they are a 1:1 mapping of real stocks held in custody by the platform.

You only need a cryptocurrency wallet to buy and sell these "stock tokens" anytime, 24 hours a day, just like buying Bitcoin.

  1. Why has it become popular?

Traditional trading of US stocks has many barriers: opening an account is troublesome, trading times are limited, and you cannot directly buy with RMB. However, tokenization of US stocks has the following advantages:

Round-the-clock trading, unrestricted by time and time zones.

The trading threshold is low, you can buy 0.01 shares for just a few dozen yuan.

No need to go through a broker, you can participate with just a mobile phone.

For many young investors, tokenization is more "free" and "natively digital" than traditional securities.

  1. Who is doing it? Is the risk high?

Currently, platforms such as Swarm, Backed Finance, and Matrixdock are launching US stock token products, and some DeFi protocols (such as Synthetix and Ondo) also support this type of trading.

But be aware of the risks:

Regulation is still unclear and falls into a gray area in some countries.

The issue of custody and decoupling, whether the token is really 1:1 pegged, depends on the reliability of the platform.

Platform credit risk, centralized platforms may go bankrupt or freeze funds

  1. What impact does the tokenization of US stocks have on the crypto market?

This is a key link. The tokenization of US stocks is expected to become a "bridge" between traditional finance and the crypto world:

Attract traditional funds to enter the market: Stock assets on the blockchain allow institutions or conservative investors to gradually engage with the crypto ecosystem.

Increase the variety of on-chain assets: no longer limited to cryptocurrencies, DeFi can also support stock trading.

Promoting Compliance Exploration: US stock tokens belong to securities, which will compel the entire cryptocurrency market to be more compliant and mature in terms of regulation and product structure.

Increase the usage rate of public chains: especially the activity and utility on chains like Ethereum will improve.

It can be said that it has opened up a whole new "asset dimension" for the cryptocurrency market.

V. Conclusion: Opportunities and Risks Coexist

The tokenization of US stocks is a bold attempt to break financial boundaries, allowing global users to access traditional quality assets in a more flexible way, while also injecting new vitality into the crypto world.

However, it is not a "zero-risk" game. In the current environment of unclear regulations and immature platforms, investors need to carefully choose platforms and understand the underlying mechanisms, and cannot act impulsively.

If traditional US stocks are the "fortress of the old world," then tokenization may be the key to unlocking the "new era of digital assets."

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)