THE ADVANTAGES đ AND DISADVANTAGES đ€§ OF TOKENIZED SHARES
A tokenized share is a digital token issued on a blockchain representing the price of a real share (such as Apple or Tesla). This allows investing in the stock market from a crypto environment without going through traditional channels.
Each token is designed to accurately reflect the price of the share, typically through a 1:1 ratio with a real share held in custody by a licensed third party.
đ„ Advantages of tokenized shares
Buying and selling possible 24/7 and with cryptocurrencies
Possibility of fractional purchase (e.g. 0.01 share)
No KYC required if purchased via a crypto wallet
More favorable fees compared to a traditional broker
đŽ Disadvantages of tokenized shares
Payment of dividends not guaranteed or absent
Almost exclusively US shares from the S&P 500 at present
Liquidity can be very low on certain tokens.
