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So, you want to buy Nvidia or even an unlisted OpenAI stock — but it’s not even listed yet. Welcome to the latest fintech fad: tokenised stocks. Wall Street meets crypto, with a dash of science fiction. Sounds exciting? It is.
But as with most trends, it’s equal parts innovation and chaos. So, let’s take a deep dive into this new world.
What are tokenised stocks?
Think of tokenised stocks as digital versions of real company shares — like Apple, Nvidia, or OpenAI — that live on a blockchain.
There are two types:
1. Backed tokens – These are tied to actual shares. For example, if someone holds one real share of Nvidia in a vault, they issue one matching digital token that you can buy.
2. Synthetic tokens – These don’t hold any real shares, but their price moves just like the actual stock.
With tokenised stocks, you can:
- Trade 24/7 (even on weekends)
- Buy tiny fractions of expensive stocks
- Sometimes even earn tokenised dividends
It’s like buying shares — but in a crypto-style, always-open, global market.
Why are tokenised stocks suddenly popular?
1. Global access & convenience: Tokenised stock investing is currently available in Europe. Anyone, anywhere there can trade stocks like Nvidia, Apple or even private firms like OpenAI — outside regular markets.
2. Fractional ownership: You don’t need to buy a whole share, just invest what you can afford.
3. Win-win for stock and crypto investors: If you're in Europe, you can buy tokenised versions of US stocks using blockchain. And if you're in the US, you can now earn rewards by locking up staking cryptocurrencies like Ethereum and Solana in return for interest. So, whether you're into stocks or crypto, Robinhood is trying to give you more ways to invest and earn.
Robinhood, Kraken, Coinbase and Backed Finance are the leading platforms.
What are the risks?
1. Wild price swings: Tokenised stocks can often trade on lightly regulated crypto exchanges, which can lead to extreme price distortions. Wall Street Journal recently reported that a token tracking Amazon (AMZNX) surged to $23,781 on the crypto exchange Jupiter — more than 100 times Amazon’s actual stock price. Another token tracking Amazon briefly hit $891.58 on July 5 — nearly 4x its actual price of around $190, according to CoinGecko data.
2. Lack of regulatory oversight: This opens the door to insider trading, price manipulation, and fraud — with little recourse for investors.
3. Thin liquidity = big distortions: Tokenised stocks often trade in low volumes, so a small transaction can send prices soaring. For example, as per the same Wall Street Journal report, a user tried buying just $500 worth of Amazon tokens on July 3 triggered the price to jump more than 100x.
4. Companies didn’t authorise them: Tokens are sometimes launched without approval from the companies they track. Robinhood launched tokens based on OpenAI and SpaceX — without permission from either company. As a result, OpenAI disavowed the tokens, saying: “We did not partner with Robinhood, we are not involved in this, and do not endorse it.”
Our take
Tokenised stocks sound exciting: fractional access to global stocks (including unlisted companies), 24/7 trading and a sleek, blockchain-powered experience. But beneath the buzz lies a fair share of red flags.
At Value Research, we believe that good investing is built on trust, regulation and clarity. Tokenised stocks, as they exist today, offer none of these in full measure. Many of them are unregulated, prone to wild price swings, and in some cases, not even backed by real shares. That’s a dangerous mix.
Until regulatory frameworks catch up — and platforms offer proper investor protections against market manipulations — tokenised stocks are not ready for serious investors.
For now, this remains an experiment best watched from the sidelines.
Also read: Bitcoin at $100,000 is a whole new danger
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Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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