Latest news with #tokenizedstocks
Yahoo
5 days ago
- Business
- Yahoo
Kraken exec says tokenized stocks will let you ‘buy coffee with Tesla'
Kraken exec says tokenized stocks will let you 'buy coffee with Tesla' originally appeared on TheStreet. Cryptocurrency exchange Kraken is taking a big swing at the emerging market for tokenized equities, launching a product it calls xStocks — 24/7, permissionless, and non-custodial tokenized stocks available worldwide. 'First, so xStocks are tokenized stocks. They're 24-7, non-custodial, permissionless, available anywhere. And we've launched a few months ago the first 60 of them, offering them on the Kraken platform through much of the world and hopefully in Europe soon,' said Mark Greenberg, Vice President and General Manager, Consumer Product and Business at Kraken in a conversation with Scott Melker on The Street Roundtable. Currently, the product is available in Kraken's 'rest of world' markets, spanning Latin America, most of Asia, and the Middle East. 'Over time, we hope to offer them, as I said, in Europe as well. We'll hopefully be able to do that in the next few weeks,' Greenberg appeal is clear for markets with limited equity access. 'Even as a Canadian, I don't have a lot of access to certain equity. So I was trying to buy an equity adjunct in Europe the other day and turns out actually my broker doesn't even allow that. What we're planning to do here with xStocks is allow folks around the world to buy stocks in everything… not everybody can buy especially fractional components of that if they only have say 10 or 20 dollars that they want to put into something like Tesla.' The infrastructure is fully backed. 'The stocks are held one to one backed in a SPV, a special purpose vehicle in Jersey. And then they are… minted into tokens through a prospectus in Europe and then offered. And so basically every time you mint one of these tokens, a share is bought and then those tokens can be sold, bought or sold on Kraken or on Dex's or on lots of other exchanges.' Greenberg contrasted Kraken's approach with more limited tokenized offerings from big institutions. 'A lot of these early things, right? Like you could only buy and sell it back to the issuer… You couldn't even send it to yourself somewhere else… that's actually what we were trying to avoid… And for sure, xStocks, I think, is at the forefront of that.' Kraken also plans to integrate tokenized stocks with traditional equities and everyday spending. 'Soon we're going to be launching a card in Europe and the UK… if you want to hold your… money in Tesla… you can absolutely do that. And then you can buy your coffee with it… you can do that with Tesla or Fartcoin or USDC.' The card launch, Greenberg added, is 'hoping just a few weeks away, actually for our launch in Europe.' Tokenized market surges As per a data tracker for tokenized real-world assets, the market for tokenized stocks is showing steady growth. The sector's total value currently stands at $391.70 million, up 0.30% from 30 days ago. Monthly transfer volume has surged 34.01% to $314.69 million, indicating heightened trading activity. The number of monthly active addresses is 53,194, up 1.57%, while the total number of holders has climbed 14.90% to 61,160, signaling expanding adoption across global markets. The largest tokenized equity by value is EXOD (Exodus Movement Inc. Class A), issued via Securitize on the Algorand network, with a market value of $281.6 million and an 83.72% share of the tracked total. Other notable assets include TSLAx (Tesla Inc.) on Solana with $9.93 million in value, up 102.9% over the past month, and MSTRx (MicroStrategy Inc.) at $4.26 million, up 56.53%. Traditional market heavyweights like SPYx (S&P 500 ETF), NVDAx (NVIDIA Corp), and AAPLx (Apple Inc.) also feature prominently, reflecting investor interest in blue-chip tokenized equities. Kraken exec says tokenized stocks will let you 'buy coffee with Tesla' first appeared on TheStreet on Aug 8, 2025 This story was originally reported by TheStreet on Aug 8, 2025, where it first appeared. Sign in to access your portfolio
Yahoo
23-07-2025
- Business
- Yahoo
"Tokenized" Stocks Are Breaking Down Barriers. Here's What Investors Need to Know.
Key Points Robinhood just launched its tokenized stocks platform in Europe. It's offering tokenized versions of both public and private companies. There are a few ways to benefit from stock tokenization without buying the tokens. 10 stocks we like better than Robinhood Markets › Modern stock trading still runs on systems that were designed when every phone had a cord. Robinhood's (NASDAQ: HOOD) new tokenized stock program, which rolled out to its European users this month, is the latest attempt to switch over to faster trade processing pipes that are actually public blockchains. The brokerage is letting people buy crypto tokens that represent shares of Apple, Tesla, or even private companies, and it could potentially launch this feature in the U.S. market soon. The promise is 24/7 trading, near‑instant transaction settlement, and the ability to buy stocks directly using crypto. That promise matters because the next wave of capital to enter crypto is likely to arrive through inflows to familiar tickers. Here's what you need to know about this trend, and how to take advantage of it with your investing. Tokenized assets are going mainstream Think of a tokenized stock as a crypto token that can (but does not always) confer ownership of the underlying stock. Ideally, a company issues a token while it holds shares of the stock that's being tokenized. The investor buys the token from them, and then, in theory, holders of the token can redeem it for shares of the stock if they choose to do so. The price of the token is tightly coupled to the price of the underlying stock, as the token is exchangeable for it. Another, far less desirable, implementation of the tokenization idea is a token that is artificially configured to mirror the price action of the underlying asset, without the token issuer actually owning any shares at all. Typically, the tokens are set to mirror the performance of the shares of private companies. These companies do not have stocks that are traded in highly liquid markets like those for public companies, and some of them are technically not allowed to be traded without permission of the stock's issuer. In such a situation, token issuers are providing a financial product that's totally unmoored from the actual value of the asset, so there's nothing to stop holders from getting burned. Of course, it's still possible to sell such tokens to a greater fool, but they are in no way investment-grade, and you should not buy them. For its part, Robinhood says it will back its public company tokens with real equity. But its OpenAI and SpaceX tokens rely solely on Robinhood's own hedging desk, meaning holders have no claim on the underlying businesses if things go sideways. In other words, Robinhood issues the less desirable and uninvestible type of tokenized stock, as well as tokenized shares backed by its own holdings. But why bother with tokenization of stocks in general? In short, convenience. Traditional equity trades in the U.S. settle the next day, they may incur fees, and the market shuts down for nights and weekends. A blockchain can close a tokenized trade in seconds for less than a penny, and it never sleeps. Robinhood is betting that this streamlining and wider trading window will win it new customers. The upside could be massive for investors who position carefully in advance of this trend. Boston Consulting Group (BCG) pegs the potential market for tokenized real-world assets (RWAs), including stocks, at about $16.1 trillion by 2030. Today, only about $22 billion in assets are actually tokenized on‑chain. $528 million of this trading volume is stocks, but that's changing quickly. One chain could be the biggest beneficiary here Enter Solana, (CRYPTO: SOL) the chain that handles thousands of transactions per second, with typical fees of fractions of a cent. Those attributes matter for its prospects as a home for tokenized stock trading. The value of tokenized assets on Solana has soared 140% as of mid-July to reach more than $101.6 million, outpacing the broader tokenization market and capturing the vast majority of this year's growth in the tokenized stocks segment. xStocks, a Solana‑native project launched on June 30, onboarded over 40,000 crypto wallets in its first week, offering more than 50 tokenized U.S. tickers. For now, Solana's combination of throughput and cost gives it a first-mover advantage in tokenized stocks. If the segment follows the broader tokenization roadmap, capital will chase liquidity, reinforcing that lead. Regulation could hobble the segment, or a faster competitor could emerge, so size your positions accordingly. Investors interested in the tokenization wave thus have two main options. One is to buy Robinhood and hope the brokerage scales the program without angering regulators, and that its dalliance with issuing tokenized stocks of private companies ends before there's serious fallout. The better option is to own a sliver of the tokenization rails via an investment in Solana or another chain that's going to be a hub for tokenized equity trading. If tokenized equities graduate from curiosity to mainstream channels, early exposure to Solana could look wise. Since it's a blockchain system rather than a company, multiple tokenized stock issuers could operate on Solana's network. That means that the regulatory risk to the network as a whole is much lower than an investment in Robinhood. Robinhood's investments in tokenization could still bring investors significant wealth, but so far, it simply doesn't seem to be protecting investors or educating them properly in light of its approach to issuing tokens. Do the experts think Robinhood Markets is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Robinhood Markets make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,034% vs. just 180% for the S&P — that is beating the market by 853.75%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Alex Carchidi has positions in Apple, Solana, and Tesla. The Motley Fool has positions in and recommends Apple, Solana, and Tesla. The Motley Fool has a disclosure policy. "Tokenized" Stocks Are Breaking Down Barriers. Here's What Investors Need to Know. was originally published by The Motley Fool
Yahoo
14-07-2025
- Business
- Yahoo
Tokenized stocks are the next big fintech buzzword. Are they an innovation or a regulatory loophole?
At the end of June, Robinhood CEO Vlad Tenev stood in front of a reflecting pool overlooking the Mediterranean, clad in a striped cream suit that made him look like a crypto bro version of Jay Gatsby. Speaking to a giddy Cannes crowd, Tenev reached into a briefcase. He pulled out a metal cylinder. 'I'm holding in my hands right now the keys to the first-ever stock tokens for OpenAI,' Tenev announced. 'I'd like to transfer these tokens to you,' he told the seated onlookers, who politely waved paper fans to survive the summer heat. Tenev's gambit was the highest-profile launch yet of an increasingly buzzy product in the world of crypto and fintech: tokenized stocks, which are traditional equities in a blockchain wrapper. Proponents argue that by tokenizing publicly traded shares like Apple and Tesla, investors will be more easily able to trade and access assets, including outside the U.S. Robinhood took an even bolder step by claiming that it could tokenize shares in private companies, like OpenAI and SpaceX, that are typically only available to the world's wealthiest through venture funds or secondaries. OpenAI did not take lightly to the announcement, posting on X a few days later that Robinhood's OpenAI tokens are not OpenAI equity. 'We did not partner with Robinhood, were not involved in this, and do not endorse it,' the company wrote. 'Please be careful.' Tenev admitted that Robinhood's OpenAI tokens are not 'technically' equity, but added that they still give retail investors exposure to private assets. (If you want a more thorough explanation on how it actually works, you can turn to the king, Matt Levine.) While Robinhood's flashy announcement was more marketing than anything, with the product still limited to the European Union, you can expect to be soon inundated with discourse about tokenized stocks, which has already permeated the crypto industry for several years. Until recently, any serious forays into the space were limited to blockchain companies like Kraken and Coinbase, but Robinhood represented a crossing of the Rubicon. Don't forget, after all, that Robinhood helped push its stodgy competitors into commission-free trading for retail customers. Securities and Exchange Commission chair Paul Atkins gave an interview the same day as OpenAI's post, saying that 'tokenization is an innovation,' and crypto-friendly commissioner Hester Peirce released a letter last week calling tokenized securities 'enchanting, but not magical.' As red-hot startups like OpenAI, SpaceX, and Stripe stay private for longer, companies from Robinhood to Forge have been trying to create new vehicles allowing retail customers to access them, from private market ETFs to tokenized stocks. But while these companies will tout such innovations as 'democratization,' they also come with the same risks associated with private companies—namely, a lack of disclosure and oversight. At a hearing last week on proposed crypto legislation, Sen. Elizabeth Warren (D-Mass.) argued that tokenized stocks will help companies evade SEC regulations, though Peirce later gave a statement that market participants must adhere to federal securities laws. The future of stock trading is around the corner. But if even OpenAI is telling you to be careful, you might want to read the fine print. Leo SchwartzX: @leomschwartzEmail: Submit a deal for the Term Sheet newsletter here. Sara Braun curated the deals section of today's newsletter. Subscribe here. This story was originally featured on
Coin Geek
10-07-2025
- Business
- Coin Geek
Tokenized stocks explained: How Robinhood opened US markets
Getting your Trinity Audio player ready... Robinhood (NASDAQ: HOOD) recently announced that it would launch tokenized stocks on its very own layer 2 blockchain to its customers in the European Union. 'European customers will have access to 200+ US stock and ETF tokens. Stock token holders will also receive dividend payments directly in their app… Stock tokens will initially be issued on Arbitrum. [But] In the future, tokenized stocks will be facilitated by our very own Robinhood Layer 2 blockchain, based on Arbitrum,' said Robinhood in its official announcement. This move by Robinhood represents another instance of blockchain and digital asset products intertwining with the traditional financial system. But unlike some products, like stablecoins, where the road to adoption is murky at best, tokenized stocks have a clear, well-defined use case and an obvious appeal to retail consumers: the ability for individuals located outside the United States to easily get access and exposure to equities that trade on a U.S. stock exchange. What is a tokenized stock? A tokenized stock is basically a digital representation of a traditional equity. Instead of buying Apple (NASDAQ: AAPL) or Tesla (NASDAQ: TSLA) shares outright, you're buying a crypto token that mirrors the price of that stock. The token moves up and down in lockstep with the underlying shares. In some cases, it's backed 1:1 by an equivalent number of real shares held in reserve by a custodian, typically the brokerage offering the service. To be clear, when you buy a tokenized stock, you're not buying the actual stock itself. You are buying a synthetic version of the stock. For this reason, you typically won't have shareholder voting rights or all the regulatory protections of owning the security directly. You're buying a blockchain-issued digital representation, sometimes called a 'digital twin' of the share. Although this comes with the drawbacks you'd expect from owning a replica instead of the real thing, there are also numerous advantages, especially for individuals who would face obstacles going the traditional route to buying and holding equities via a U.S. brokerage. Why tokenized stocks are gaining momentum For starters, there are benefits that everyone trading tokenized stocks gets to enjoy. One of the biggest benefits is that tokenized stocks trade 24/7, while their traditional counterparts usually only trade during U.S. market hours (although this is starting to change, with many brokerages now supporting hundreds of stocks that trade 24/5 (24 hours a day, five days a week). But beyond that, and from an access perspective, the primary audience for tokenized stocks is international investors. In some countries, opening an American brokerage account involves a lot of paperwork and a long list of criteria that must be satisfied, such as residency requirements, proof and source of funds, tax documentation, and currency conversions. Even for qualified investors, this process can be a hassle, and for others, they simply don't have the necessary paperwork or materials to get approved to open a U.S. brokerage account. With tokenized stocks, that friction disappears. Investors can get exposure to companies listed on U.S. exchanges without navigating a complicated onboarding process or dealing with the middlemen in their countries, who might remove the obstacle of signing up but charge steep fees to access foreign markets. With tokenized stocks, all a person needs is an account on a platform that provides tokenized stocks—these platforms are usually region and country-specific to make them easily accessible—and an internet connection. The big winners in tokenized stock trading There are a few winners when it comes to tokenized stock trading. This is obviously a win for anyone who wants exposure to U.S. equities but would otherwise have trouble accessing them. Tokenized stocks let them reap many of the same benefits as traditional equity trading without requiring them to jump through all the hoops to sign up. Of course, the trade-off is that they don't enjoy the same rights and protections as direct shareholders. But the bigger 'winner' here is the companies offering tokenized stock trading, who are likely to see a significant increase in revenue thanks to their new tokenized stock offerings. Roughly 7.6 billion people live outside the U.S., and the World Bank estimates that about 5 billion are adults old enough to invest. Tokenized stocks have effectively allowed that entire audience to get exposure to U.S. equities. While investors benefit from the convenience, the platforms stand to gain even more from their patronage and the percentage of those 5 billion who join and spend money on their platform to tap into U.S. markets. This could have a domino effect, as some tokenized stock providers, like Robinhood, back each tokenized stock 1:1 with the actual equity. This means that if there is a big influx of individuals joining these platforms and buying U.S. equities, the newfound demand for U.S. stocks could lead to share prices rising. I would expect this to take place if there really is a large volume of individuals trading tokenized stocks, and if that does happen, I would expect the price increases to happen around the 'name-brand' companies that trade. The third winner is the blockchain and crypto industry itself. Tokenizing stocks on-chain further proves that crypto-native products are embedding deeper into the traditional financial system. The growing receptiveness to these offerings is a sign that meaningful innovation is happening in the blockchain and digital asset industry and that both industries are maturing. With the increasing popularity around stablecoins, and now, the early signs that tokenized stocks are a product brokerages are interested in offering, we are seeing a convergence between global demand for U.S. equities and the digital currency industry's ability to financially engineer new products that solve real-world problems and are therefore being met with real demand, which is an overwhelmingly positive development in a sector whose primary use case for several years was speculation. Watch: Reviving the true value of blockchain—utility title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen=""> European Union L2 Layer 2 Blockchain Robinhood Tokenization United States
Yahoo
09-07-2025
- Business
- Yahoo
OpenAI's warning sparks EU review of Robinhood's stock token
OpenAI's warning sparks EU review of Robinhood's stock token originally appeared on TheStreet. The Bank of Lithuania, which regulates Robinhood on behalf of the European Union, has begun an investigation into the company's newly announced tokenized equity products related to OpenAI and SpaceX. Robinhood Markets is a financial services company based in the U.S. that lets users trade stocks, ETFs, options, and cryptocurrencies without paying any fees through a simple mobile app and website. The central bank stated that it is "awaiting clarifications" from Robinhood regarding the legal structure and investor communication of the new offering. Giedrius Šniukas, a spokesperson for the central bank of Lithuania, told CNBC that they had contacted Robinhood and were investigating whether the products conform to EU financial rules.Šniukas, in an email, told CNBC, "The information for investors must be provided in clear, fair, and non-misleading language." The scrutiny is a result of a public warning issued last week by OpenAI, which stated that it had no involvement with Robinhood's purported "OpenAI tokens." OpenAI said in a statement on X: "These 'OpenAI tokens' are not OpenAI equity... We did not partner with Robinhood, were not involved in this, and do not endorse it." Robinhood launched tokenized stocks on June 30, providing EU-based users with blockchain-based access to shares, including those of private companies such as OpenAI and SpaceX. However, OpenAI emphasized that any transfer of its equity requires their approval, which was not given. Robinhood responded to OpenAI's concerns by stating that the tokens merely represent indirect exposure through its interests in a special purpose vehicle (SPV). Robinhood states that the product allows retail investors to access private markets. Robinhood did not comment further. At press time, Robinhood's stock (HOOD) is down 1.80% in the last 24 hours. OpenAI's warning sparks EU review of Robinhood's stock token first appeared on TheStreet on Jul 7, 2025 This story was originally reported by TheStreet on Jul 7, 2025, where it first appeared. Sign in to access your portfolio
