Three Types of Tokenized Stock

Tokenized Equities · Lesson 2.2

Tokenized stocks come in three broad types. With native tokens, the company issues its shares as tokens and holders appear in its share register. With custodial tokens, a custodian holds the shares and the token represents a claim linked to them. Whether holders get ownership rights, votes or a claim if something fails depends on the legal structure. Synthetic tokens track a share's price without a share held for each token. They can be backed by collateral, but your exposure is to the issuer and that collateral, not to the company. Check which type you hold before treating it like a share.

Wally’s note: same ticker. three sets of rights.

Native, custodial and synthetic tokens can track the same stock and give you very different rights.

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