Stocks

Tokenization

Tokenization of publicly traded shares refers to the conversion of ownership rights of a share into a digital token on a blockchain.

In few steps

Token creation

A clearing organization or financial platform creates tokens on a blockchain that represent ownership of a publicly traded share.

Sale of tokens

These tokens are then offered for sale on a token exchange platform. Each token represents a share of stock, and the purchase of a token gives the holder the same rights as a traditional shareholder, such as voting rights and dividend entitlements.

Token exchange

Tokens can be bought, sold or traded on the token exchange platform, just as shares can be bought, sold or traded on a traditional stock exchange.

Realization of rights

Token holders can exercise their shareholder rights based on what their tokens represent. For example, they might have the right to receive dividends or vote at shareholders’ meetings.

Examples

Alibaba Group

Shares of Chinese e-commerce giant Alibaba could be tokenized, allowing investors to purchase tokens that represent ownership of an Alibaba share.

Tesla Inc

Tesla shares could be tokenized, allowing investors to purchase tokens that represent ownership of one Tesla share.

Samsung Electronics

Shares of South Korean multinational Samsung Electronics could be tokenized, allowing investors to purchase tokens that represent ownership of a share of Samsung Electronics.

Royal Dutch Shell

Shares of Dutch-British oil and gas company Royal Dutch Shell could be tokenized, allowing investors to buy tokens that represent ownership of a Royal Dutch Shell share.

LVMH

Shares of French luxury conglomerate LVMH could be tokenized, allowing investors to purchase tokens that represent ownership of one LVMH share.

Main advantages

Increased Liquidity

Tokenization facilitates quick transactions and opens the market to more investors, thereby increasing liquidity.

Fractionalization

Tokenization makes stocks investing more accessible by allowing the purchase of small fractions of an asset.

Transparency and Security

Thanks to the blockchain, tokenization offers greater transparency of transactions and enhanced security.