What are tokenized stocks?
A tokenized stock is a blockchain-based token that represents — and tracks the price of — a real company share. Instead of buying Tesla stock through a traditional broker, you hold a token that mirrors Tesla's price, settles on-chain, and can be traded around the clock. Each token is typically backed 1:1 by the underlying share held by a regulated custodian, so the token's value stays tied to the real equity.
In other words: the exposure of a stock, delivered on crypto rails. It's part of the wider real-world asset (RWA) movement — bringing traditional financial assets on-chain — which many see as one of crypto's biggest growth stories.
How do tokenized stocks work?
The basic mechanism is straightforward:
- An issuer or custodian buys and holds the real shares (for example, 1,000 shares of Apple).
- It mints an equal number of tokens on a blockchain, each backed 1:1 by a real share.
- You buy, sell or hold the token on-chain. Its price tracks the underlying stock.
- Because the token lives on a blockchain, it can trade 24/7, be held in a self-custodial wallet, and settle in minutes.
On Robinhood Chain, for instance, the flagship exchange Arcus offers stock tokens backed 1:1 by Robinhood Crypto — pairing the trust of a mainstream broker with open, self-custodial settlement.
Tokenized stocks vs traditional stocks
| Tokenized stock | Traditional stock | |
|---|---|---|
| Trading hours | 24/7, including weekends | Market hours only |
| Where it lives | On-chain (your wallet) | Brokerage account |
| Custody | Can be self-custodial | Held by your broker |
| Settlement | Minutes, on-chain | Typically 1 business day |
| Fractional | Yes, easily | Sometimes |
| Voting rights | Usually not | Yes |
| Availability | Restricted in some regions | Broadly available |
The benefits
- Trade around the clock. Markets close; blockchains don't. React to news at 2am or on a Sunday.
- Global access. Anyone with a wallet (where legally permitted) can gain exposure to U.S. equities — no traditional brokerage required.
- Self-custody. Hold your own assets instead of relying on a broker to hold them for you.
- Fractional & low-friction. Buy a few dollars of a $500 stock, and settle in minutes.
- Composability. On-chain assets can plug into other crypto apps — for example, used as collateral for perpetual futures.
Trade tokenized stocks on Arcus
95+ markets, backed 1:1, zero-fee spot — and 5% off all trading fees via this site.
The risks & what to know
Tokenized stocks are powerful, but they're not the same as owning shares directly. Keep these in mind:
- Backing & issuer risk. The token is only as reliable as the entity holding the underlying shares. Prefer platforms where tokens are transparently backed 1:1.
- Fewer shareholder rights. You typically don't get voting rights, and dividends may be handled differently or not passed through.
- Regulation & jurisdiction. Tokenized stocks may not be available or legal everywhere, and are often restricted for U.S. persons. Check your local eligibility.
- Smart-contract & market risk. On-chain assets carry technical risk, and prices are volatile. Only trade funds you can afford to lose.
Where to trade tokenized stocks
The most prominent venue right now is Arcus, the self-custodial exchange built by the team behind dYdX on Robinhood Chain. It offers 95+ tokenized markets — 80+ equities plus indices, commodities and crypto — with stock tokens backed 1:1 by Robinhood Crypto and zero-fee spot trading. As a bonus, early activity there also positions you for the Arcus token airdrop; our step-by-step guide shows how.
FAQ
What are tokenized stocks in simple terms?
Blockchain tokens that track the price of real shares (like Tesla), usually backed 1:1 by the real stock, so you can trade equity exposure on-chain 24/7.
Are tokenized stocks the same as owning the real share?
Not quite. You get price exposure and 1:1 backing, but usually not voting rights, and dividends may be handled differently. The upside is 24/7 trading and self-custody.
Can U.S. residents trade tokenized stocks?
Often not — tokenized equities are restricted in several jurisdictions, including for U.S. persons. Always check your local eligibility before using any platform.
Where can I trade them?
On Arcus, the flagship exchange on Robinhood Chain, with 95+ markets and zero-fee spot trading.