Tokenized Stocks

Definition ∞ Tokenized stocks are digital representations of traditional equity shares that are issued on a blockchain. These tokens allow for fractional ownership, increased accessibility, and potentially 24/7 trading of underlying company stocks. They bridge the gap between traditional finance and the digital asset ecosystem.
Context ∞ The current discussion surrounding tokenized stocks involves their regulatory classification, the platforms offering them, and their potential impact on traditional stock markets. Debates often center on investor protection, market integrity, and the operational complexities of bridging traditional securities with blockchain technology. Key future developments to monitor include regulatory clarity from financial authorities and the expansion of offerings from established financial institutions.