Tokenization of US Stocks: A New Direction for Web3 Development or Old Wine in New Bottles?

Recently, the tokenization of US stocks has become a hot topic of interest in both the cryptocurrency space and the traditional finance industry. Multiple platforms have successively launched US stock tokenization products, sparking widespread discussion. Is this phenomenon a completely new development direction, or a repackaging of an old concept? This article invites several industry experts to discuss from multiple angles, including technology, compliance, investment opportunities, and risks.

US Stock Tokenization: New Narrative or Old Wine in a New Bottle?

The tokenization of US stocks is essentially a branch of real-world assets ( RWA ) and can be seen as a continuation of the issuance of security tokens ( STO ). Similar explorations had been made as early as 2017-2018, but they were still in the experimental stage at that time. The recent surge in interest is partly due to the gradual loosening of the regulatory environment and partly reflects traditional companies' desire to participate in the appreciation of cryptocurrencies through blockchain.

Compared to traditional US stocks, tokenized stocks support 24/7 trading, have a lower entry threshold, and offer stronger liquidity. It lowers the trading barrier and provides more convenience for investors. However, due to the lack of a完善的套利机制, on-chain prices may deviate from off-chain stock prices, and investors need to be wary of insufficient liquidity and slippage risks.

Overall, the tokenization of US stocks has both historical roots and is rejuvenated by regulatory and technological advancements, combining short-term sentiment with long-term potential. It is not only an endogenous growth of the cryptocurrency industry but also an external force attracting the attention of traditional finance, and is expected to become a bridge connecting Web2 and Web3.

The Difference Between Tokenized Stocks and Traditional Stocks

The main differences between holding tokenized stocks and traditional stocks are as follows:

1. No shareholder identity: Tokenized stockholders only possess an on-chain price certificate and cannot enjoy the shareholder rights of traditional stocks such as voting rights and corporate governance rights (.

2. Price mapping attribute: similar to derivatives, only tracks price, does not have actual equity.

3. High liquidity and low entry threshold: Supports round-the-clock trading, more flexible than traditional stocks, suitable for event-driven trading.

4. Different dividend methods: some platforms automatically convert dividends into Tokens, while others distribute dividends directly.

5. Redemption mechanism in doubt: If it cannot be exchanged for real stocks, it may affect its economic logic.

In terms of compliance, issuers need to obtain relevant financial licenses to ensure asset custody transparency and thorough third-party audits. However, since the Web3 industry is still developing, compliance issues still need to be continuously addressed.

Risks and Opportunities of Tokenization of Unlisted Stocks

The tokenization of unlisted stocks carries the following main risks:

1. Legal Compliance and Governance Conflicts: Some companies may not recognize tokenized stocks, leading to unclear legal status.

2. Information asymmetry: The token may be backed by fund LP shares, and the specific information is opaque.

3. Lack of pricing transparency: Insufficient liquidity and imperfect pricing mechanisms make it difficult to protect investors' rights.

4. Authenticity cannot be verified: It is difficult to confirm the authenticity and quantity of pledged assets.

Nonetheless, if the company cooperates with ), such as early founders pledging shares and notarizing (, tokenization can also provide opportunities for pre-IPO pricing and cash flow recovery for startups, reducing the risk of insufficient R&D funding. This could be a significant opportunity for early-stage projects.

Considerations for Choosing an Issuance Chain

Different platforms have their own choices when it comes to issuing chains, with the main considerations including:

1. User Base and Transaction Speed
2. DeFi Ecosystem Maturity
3. Gas fees
4. Contract Customization
5. Business Interests and Technical Cooperation

Choices are often related to corporate governance style, investment direction, and business interests, not just based on the advantages or disadvantages of technology.

The Long-term Value of Tokenization in the US Stock Market

The tokenization of US stocks has long-term value, similar to the transformation of stocks from offline to online. Its advantages include:

1. High transparency: Blockchain records are verifiable, and information symmetry is superior to traditional finance.
2. Regulatory improvements are gradually being made: compliance requirements are stricter than in previous years.
3. Risk control improvement: The selection of quality assets and automation of smart contracts reduce human risk.
4. Technological advancement: Blockchain infrastructure is superior to traditional systems.

However, there are still speculative elements at the current stage, and one must be wary of the risk of artificial manipulation. Market maturity, regulatory environment, and technological development will jointly determine its long-term value realization.

Other Tokenization Directions Worth Noting

In addition to US stocks, there are also some tokenization directions worth paying attention to:

1. Copyright assets: such as music, film and television, books, website advertising revenue sharing, etc.
2. Real Estate: However, strong regulation and legal constraints are needed.
3. Future profits: such as tea production, undeveloped land, etc.

These directions may provide new financing channels and revenue distribution models for content creators, traditional industries, and others. However, they also face challenges such as regulation and liquidity, requiring the market to mature further.

Overall, the tokenization of US stocks, as an important branch of RWA, is expected to reshape the finance and content industries. It lowers transaction thresholds and costs, supports round-the-clock trading and rapid pricing. However, it also faces challenges such as insufficient liquidity, price divergence, lack of redemption mechanisms, and regulatory uncertainties. Future development still requires joint efforts from technology, regulation, and the market.