Stock tokenization digitizes traditional equities onto blockchains, bringing advantages like fractional ownership, global access, and faster, automated settlement. However, challenges persist, notably around regulation, liquidity, and technical vulnerabilities. As both retail enthusiasm and institutional experimentation grow, tokenized stocks stand to reshape investing by merging DeFi innovation with TradFi rigor. Security best practices—smart contract audits, reserve proofs, compliance—are critical to building trust in this evolving asset class.
Q1: What is a key benefit of tokenized stocks?
A1: Fractional ownership and 24/7 trading
Q2: Primary regulatory risk:
A2: Programmable automation
Q3: What drives retail hype in tokenized stocks?
A3: Access, transparency, and ownership appeal
Q4: Preferred security measure for platforms includes:
A4: Audited smart contracts and proof-of-reserve
