What is Tokenized Equity?
A tokenized equity is a blockchain token that represents ownership of, or economic exposure to, a real company share. Backed versions are collateralized 1:1 by the underlying stock held in regulated custody; the token trades 24/7 and its on-chain price is tracked against the share's net asset value (NAV).
Also called: tokenized stock · tokenized share · on-chain stock · tokenised equity
How tokenized equities work
An issuer such as Backed (xStocks), Ondo Global Markets, or Securitize buys and holds the underlying share in regulated custody, then mints a matching token — for example NVDAon, TSLAx, or METAon — on a public chain like Solana or Ethereum. The token can trade and settle on-chain around the clock, while a mint-and-redeem process keeps the supply roughly 1:1 with the shares held in custody.
Price discovery uses oracles. Low-latency feeds (Pyth) and on-chain reference feeds (Chainlink) publish the market price, and the issuer publishes the fund or share NAV. Dividends and corporate actions are handled per each issuer's terms — some reflect them as a token adjustment or distribution, others do not — so the exact rights attached to a token always depend on the issuer.
Backed vs synthetic tokenized stocks
A backed (or asset-referenced) tokenized stock is collateralized by a real share held 1:1 in custody. A synthetic tokenized stock instead offers price exposure through collateral and derivatives, with no real share behind each token. Backed structures carry custody, issuer, and redemption considerations; synthetic structures add collateral and counterparty considerations.
Compared with a traditional brokerage share, a tokenized equity adds 24/7 trading, fractional sizing, on-chain settlement, and composability — and adds smart-contract, custody, liquidity, and jurisdictional considerations that a traditional share does not. This is information, not advice.
Frequently asked questions
Do tokenized stocks pay dividends?
It depends on the issuer. Many backed tokenized stocks reflect dividends as a token adjustment or distribution under the issuer's terms, while others do not pass them through. Always check the specific product's documentation.
Is a tokenized stock the same as owning the real stock?
Usually no. A backed tokenized stock is a claim on a share held in custody by the issuer, not direct registered ownership on the company's books. Voting and dividend rights depend on the issuer's terms.
Can US investors buy tokenized stocks?
Access is jurisdiction-gated and many products explicitly exclude US persons or restrict eligibility. Check each issuer's eligibility rules before assuming access.
Where this shows up live
On the desk
Live NAV board — tokenized equities, price vs NAV
Compare: Ondo Global Markets vs xStocks
Every figure on those pages carries its source and as-of time. Nothing is shown when the upstream is unavailable.
Read the desk note
The longer version, written from the desk: Tokenized stocks, without the brochure.
Related terms
- Real-World Asset (RWA) — A real-world asset (RWA) in crypto is an off-chain asset — a Treasury bill, equity, fund, bond, commodity, or property — represented as a blockchain token.
- NAV Premium & Discount — NAV premium (or discount) is the gap between a tokenized asset's on-chain market price and its net asset value (NAV) — the value of the underlying share or fund.
- Wrapper Token — A wrapper token is the on-chain envelope around an off-chain asset: a token issued by a vehicle — a fund, an SPV, or a regulated issuer — that holds the real share, bond or unit in custody.
- Multi-Oracle Pricing — Multi-oracle pricing values a tokenized asset by comparing several independent price feeds — such as Pyth, Chainlink, the issuer's published NAV, and the on-chain market price — instead of trusting one source.
More in Equities
Backed vs Synthetic Tokenized Assets · Corporate Action · Dividend Passthrough · Equity Token · Stock Split Handling · Synthetic Exposure
Informational only · not financial advice. See the live numbers on the data desk, the sourcing rules in the methodology, or the day's stories in the newsroom. · ← All glossary terms