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A new trend has gripped the crypto industry

Updated: Mar 28

A new trend has gripped the crypto industry

Tokenized stocks offer many options nowadays. Companies like Apple or Microsoft made them accessible to the crypto system. What the tokenized stocks are really about, what opportunities they offer investors and where this stock could develop, is shown in our current issue of the crypto compass.

Shares are securitized securities that are deposited with a custodian. This means that even if we trade stocks online with a security broker, they are still physical actually. There are many processes and inefficiencies associated with this. With the help of tokenized stocks, attempts are now being made to create digital currencies, token derivatives that have already been issued. Such a blockchain token can thus be embedded as a mapping of an underlying asset, such as an Apple share, in a different and, above all, more flexible infrastructure.

What Are The Advantages Of Tokenized Stocks?

Of course, the question arises as to why an investor or trader should rely on tokenized stocks. One such advantage would be, for example, that you don't have to purchase a share as a whole. For example, if you want to buy or sell an Apple share, you currently have to put around a bit money on the table. Now not every person has so much capital at their disposal or the willingness to carry out trading or financial savings plans with such large denominations. Tokenized shares now offer the option of acquiring most effective a share of the shares, for example just one % of a share. The costs of securities transactions can also be significantly lower compared to regular securities transactions.

In the next few months, many more crypto exchanges and different vendors are more likely to introduce tokenized shares. In addition to Binance, there are additionally other providers which are provided.

View From Stock Token

Providers - CFD stands for contract for difference - could be hit hard by the emergence of tokenized stocks. Those who do not rely on the new token themselves could soon be displaced by the stock tokens. But even among crypto providers, new competition from the finance could arise. What is still in its infancy could develop into a large sector in the future.

The contents of this article are for informational purposes only and are not investment advice.

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