What Are Stock Tokens?

Stock tokens are on-chain representations of shares in real companies. Each token is backed 1:1 by an underlying share held by a regulated custodian, so the token's price is designed to track the stock's price rather than move independently.

Holding a stock token is different from holding the share directly through a brokerage. You get exposure to the price and, in most designs, corporate actions like splits are reflected in the token, but you typically don't get direct voting rights at the shareholder level — those stay with the custodian who holds the underlying share.

The appeal is composability: once a stock is represented as a token, it can move between wallets, be posted as collateral, or be paired with other assets in a way a traditional brokerage account can't easily support.

The trade-off is counterparty and custody risk. You're trusting that the entity minting the token actually holds — and will keep holding — the real share behind it, and that redemption works as advertised if you ever want to convert back.