What Is a Tokenized Stock?

A tokenized stock is a crypto token, issued on a blockchain, whose value is meant to follow a share of a listed company or a fund. Issuers hold the underlying securities or enter into arrangements that give the token exposure to them, and the token can usually be transferred on the blockchain at any hour. Structures vary, and the legal rights of the holder depend on the structure and on the jurisdiction.

The staff statement on tokenized securities published in January 2026 by three divisions of the US Securities and Exchange Commission separates two models. Securities tokenized by or for the issuer are treated like any other form of the same security under the federal securities laws. Securities tokenized by third parties can be custodial arrangements that represent an indirect interest, or synthetic exposure through other instruments, without conferring ownership of the underlying share. For the third-party case the statement notes that holders can face risks, such as the bankruptcy of the third party, that a holder of the underlying security would not necessarily face.

The final report of the International Organization of Securities Commissions on the tokenization of financial assets, published in November 2025, found that most risks fall into familiar categories, such as legal uncertainty and operational and cyber risk, that they depend on the specific design and that adoption is still limited. A token price can also differ from the share price: the token can trade while the underlying exchange is closed, and its liquidity, fees, redemption terms and the issuer's creditworthiness affect what it trades at. Dividends and corporate actions are handled according to the token's terms.