Cryptocurrency exchange Bitrue has announced the launch of tokenized trading for stocks of major companies such as NVIDIA, Tesla, and Apple. But what do they actually represent and what are the limitations?
What Are Tokenized Stocks?
Tokenized stocks are digital assets that represent tokenized versions of company shares. Bitrue has announced that these tokens are now available for trading on its Alpha platform. Buying and selling tokens uses the stablecoin USDT, allowing users to avoid the need for a traditional brokerage account and adhere to U.S. market hours.
Advantages and Disadvantages of Tokenized Stocks
Among the advantages of tokenized stocks is the easy access to assets for users around the world. However, it is important to note that such tokens do not grant ownership rights, dividends, or voting rights. "We are working to break down the barriers of traditional finance that often exclude smaller investors," said Adam O’Neill, Chief Marketing Officer at Bitrue. Investors receive synthetic exposure to stock performance, not actual equities.
Future of Tokenized Assets
The market for tokenized traditional assets is becoming increasingly crowded, with major players like Bybit, Kraken, and Robinhood also launching their own versions. While Bitrue offers simplicity and immediate utility, the coming wave of more programmable tokenized assets may compel participants to reconsider the value they truly provide.
The launch of tokenized stocks on Bitrue highlights the changes in the investment landscape. Investors should be aware of the risks and characteristics of these assets to make informed decisions.
