Tokenized Stocks Are Testing the Limits of Onchain Ownership

Tokenized stocks promise to make traditional equities easier to transfer, trade and integrate with blockchain-based financial services. Yet the ability to move a digital token between wallets does not necessarily give its holder the same rights as owning a share through a conventional brokerage account. As tokenized equities enter decentralized lending markets, the legal structure behind each token is becoming increasingly important. Investors must consider who holds the underlying shares, what claims they can enforce and whether they can convert their tokens into traditional securities.

Source: The Crypto Basic