Tokenized stocks are blockchain tokens that track shares of listed companies or ETFs, such as Apple or an S&P 500 fund. Some represent shares held in custody for you; others, including Ondo Global Markets tokens, give economic exposure without shareholder voting rights. Many offshore versions are closed to US persons.
How do tokenized stocks work?
Tokenized stocks are one branch of real-world asset tokenization. A typical third-party product works like this:
- Backing: the issuer buys the underlying shares through brokers and holds them in a ring-fenced structure. Ondo Global Markets describes a bankruptcy-remote special purpose vehicle with at least one independent director, with a third-party security agent holding a first-priority security interest.
- Minting: tokens are created on public blockchains. Ondo Global Markets tokens are available on Ethereum, BNB Chain and Solana and use an "on" suffix, so Apple becomes AAPLon.
- Corporate actions: Ondo reinvests dividends net of withholding tax, so its tokens are total-return trackers and one token can come to represent more than one share.
- Redemption: eligible holders can swap tokens back with the issuer; everyone else trades them on exchanges or on-chain.
What rights do tokenized stock holders get?
Rights depend on who tokenized the share and how. In January 2026, SEC staff described three models:
| Model | How it works | Shareholder rights | Who you depend on |
|---|---|---|---|
| Issuer-tokenized | The company itself records its shares on a blockchain | Full shareholder rights | The company (as with ordinary shares) |
| Custodial (third party) | A custodian holds real shares; the token represents your entitlement to them | Can include voting, depending on the arrangement | The custodian and token issuer |
| Synthetic (third party) | The third party issues its own note or swap that tracks the share | Typically none from the company | The third-party issuer, including its possible bankruptcy |
Ondo Global Markets states plainly that its tokens give the same economic exposure as owning the stock but no voting, statutory information or other shareholder rights. By contrast, Ledger Insights reported in July 2026 that Ondo launched a separate onshore US product, issued through its SEC-registered transfer agent, in which tokens are security entitlements carrying ownership and voting rights. SEC Commissioner Hester Peirce has warned that buyers of third-party tokens may face counterparty risk, and that a token without real ownership rights could be a security-based swap that US retail investors cannot trade off-exchange.
Tokenized stocks vs regular shares: what's the difference?
| Feature | Tokenized stock | Share at a broker |
|---|---|---|
| Trading hours | Tokens can move 24/7; the underlying exchange still has set hours | Exchange hours, with some extended sessions |
| Settlement | Minutes on-chain | Usually one or two business days after the trade, depending on the market |
| Smallest amount | Fractions of a share | One share, or fractions at some brokers |
| Shareholder rights | Depends on structure; often none | Voting and information rights |
| Who can buy | Often restricted by country and investor type | Anyone with an eligible brokerage account |
How do you invest in tokenized stocks?
- Check you are eligible. Ondo Global Markets prohibits buy orders from within the United States and purchases by US persons (as defined in Regulation S), as well as residents of Canada and sanctioned countries such as Cuba, Iran and North Korea. In the UK, the EEA, Brazil, Hong Kong, Malaysia and Singapore, buyers must qualify as professional, qualified or accredited investors, and Switzerland excludes individuals altogether.
- Identify the structure. Find out whether the token is issuer-tokenized, custodial or synthetic, who issues it, and where its offering documents are published.
- Pick an access route. You can onboard with the issuer or an approved distributor (identity checks apply), buy on an exchange or wallet that lists the token where you are eligible, or hold it indirectly through a fund that owns these tokens.
- Check the price and costs. Compare the token price with the last stock-market price, especially at weekends, and include spreads and network fees.
- Plan custody and tax. Decide who holds the keys and keep records; the tax treatment of tokenized stocks can differ from ordinary shares.
Our Ondo tokenized stocks guide goes deeper into the Ondo Global Markets structure, and our comparison of a crypto index fund vs an ETF explains why a regulated ETF at a broker may suit you better.
What are the risks of tokenized stocks?
- Issuer risk: with synthetic tokens your claim is against the issuer, not the company.
- Rights gap: you may have no vote and no direct claim in a takeover or delisting.
- Off-hours pricing: when the stock market is closed, token prices can move away from the last traded share price.
- Eligibility and rule changes: access can be withdrawn if you move country or rules change.
- Technology: smart-contract, bridge and wallet risks apply as with any token.
Tokenized stocks in Wealtii funds: the Wealtii Tech & Digital Asset Growth Fund holds Ondo Global Markets tokens for NVIDIA (17.6%), Alphabet A (16.3%), Invesco QQQ (15.4%) and Apple (15.3%), and the Wealtii Multi-Asset Balanced Allocation Fund holds SPDR S&P 500 ETF (19.8%) and iShares Silver Trust (19.6%) tokens (target allocations, 21 Oct 2026). These tokens give economic exposure without shareholder voting rights, and funds containing them may not be available in all jurisdictions, including the United States. You hold fund units and withdraw in USDT. Wealtii is not regulated. To see which fund matches your goals, read which Wealtii fund is right for me.
Frequently Asked Questions
What are tokenized stocks?
Tokenized stocks are blockchain tokens that track the price of a listed share or ETF. Depending on the structure, a token may represent a share held in custody for you, or be a separate instrument issued by a third party that only mirrors the share's price and returns.
Do tokenized stock holders get voting rights?
It depends on the structure. Ondo Global Markets says its tokens give the same economic exposure as owning the underlying stock but no shareholder voting rights, statutory information rights or other shareholder rights. Custodial models that hold shares as security entitlements for the token holder can pass voting rights through.
Do tokenized stocks pay dividends?
Ondo Global Markets tokens are total-return trackers: dividends are reinvested, net of withholding tax, so one token can come to represent more than one share over time. Other issuers may pay dividends out instead, so check the issuer's documents before you buy.
Can US residents buy tokenized stocks?
Not Ondo Global Markets tokens. Ondo prohibits buy orders placed from within the United States and purchases by US persons under Regulation S, as well as residents of Canada and sanctioned countries, and limits buyers in the UK, EEA and several Asian markets to professional or qualified investors.
Are tokenized stocks regulated?
SEC staff treat tokenized securities as securities, so US securities laws apply to them. Offshore issuers such as Ondo Global Markets (BVI) Limited operate under their own jurisdictions' rules and restrict who can buy. Holding these tokens through an unlicensed platform such as Wealtii gives you none of the protections of a regulated broker.
Sources & References
- U.S. SEC staff — Statement on Tokenized Securities (28 Jan 2026) (accessed 21 Oct 2026)
- U.S. SEC, Commissioner Hester Peirce — Enchanting, but Not Magical: A Statement on the Tokenization of Securities (9 Jul 2025) (accessed 21 Oct 2026)
- Ondo Finance — Ondo Global Markets overview (issuer, rights, dividends, chains) (accessed 21 Oct 2026)
- Ondo Finance — Ondo Global Markets eligibility and prohibited persons (accessed 21 Oct 2026)
- Ledger Insights — Ondo launches onshore US tokenized stocks with ownership rights (2 Jul 2026) (accessed 21 Oct 2026)
Disclaimer: This content is for educational purposes only and does not constitute financial, tax, or legal advice. Tokenized securities and digital assets are volatile and you can lose money. Eligibility rules described here are summarised from issuer documents and can change. Wealtii is not licensed or registered with any financial regulator; see our regulatory status page. Tax and legal rules change frequently and differ by country. This article is general information, not tax or legal advice — consult a qualified professional in your jurisdiction.
