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What is a tokenized stock?

A tokenized stock is a digital asset traded on exchanges using blockchain technology. The term tokenized stock describes two slightly different types of investments. First, some companies issue tokenized stocks as a form of equity to help raise capital. Similar to an initial public offering (IPO), companies issue an ICO — initial coin offering.

What are fractional shares of tokenized stock?

Exchanges sell fractional shares of tokenized stock, meaning rather than purchasing an entire share of stock, you buy just a percentage of one. For example, you could purchase a fractional tokenized stock with an underlying asset that is half of a share.

What are Bittrex tokenized stocks?

Bittrex issues tokenized stocks in association with a Switzerland-based asset-tokenization platform known as DigitalAssets.AG. All the tokenized stocks issued on Bittrex are backed by actual equity shares that are kept in reserve by DigitalAssets.AG. Features of tokenized stocks on Bittrex include the following:

What is the difference between cryptocurrency and stocks?

There are key differences when it comes to cryptocurrency vs. stocks. Tokenized stocks occupy the middle ground. A tokenized stock is basically the same thing as a share of equity in a publicly traded company, like stocks traded on the Nasdaq or S&P 500. The difference is tokenized stocks come in the form of digital tokens.

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