It's already 2025, and you still don't know the 4 ways to play with stock tokenization?

Stock tokenization is one of the core trends in the integration of fintech and blockchain, revolutionizing asset liquidity, accessibility, and operational efficiency by converting traditional equity into on-chain tokens. The current mainstream approaches can be categorized into the following four types, each corresponding to different technical architectures, target assets, and applicable scenarios:

📈 1. Exchange Spot Stock Tokenization (e.g., $Etoro(ETOR.US), $Robinhood(HOOD.US))

Core Logic: 1:1 mapping of exchange-listed stocks to on-chain tokens (e.g., ERC-20), supporting 24/5 or 24/7 trading.
Typical Cases:
- eToro: Launched ERC-20 tokens for 100 U.S. stocks and ETFs in August 2025, allowing users to transfer to self-custody wallets and access DeFi protocols (e.g., collateralized loans).
- Robinhood: Introduced 200+ U.S. stock tokens on Arbitrum L2, enabling European users to trade at a 0.1% fee, with plans to migrate to its proprietary Robinhood Chain.
Advantages & Innovations:
- Breaking Trading Time Limits: Overcoming traditional exchange hours (9:30–16:00);
- Reducing Friction Costs: On-chain settlement eliminates intermediary clearing;
- Asset Interoperability: Tokens can be composable across DeFi protocols.
Challenges: Requires strict compliance (e.g., MiCA framework), and unlisted stocks need additional authorization.

🏗️ 2. Structured Product Tokenization (e.g., $GF SEC(01776.HK))

Core Logic: Converting equity-linked notes (ELNs) and other derivatives into programmable tokens for T+0 on-chain closed-loop trading.
Typical Case: GF Securities (Hong Kong) launched "Equity-Linked Tokenized Securities," allowing subscribers to convert into stable-yield tokens (GF Token, anchored to SOFR rates) anytime, improving capital efficiency.
Advantages & Innovations:
- Dynamic Asset Conversion: Seamless switching between risky assets (equity-linked) and stable-yield assets (GF Token);
- Automated On-Chain Settlement: Simplifies traditional OTC derivative processes;
- Optimized Capital Utilization: Addresses client liquidity and operational risks.
Challenges: Relies on issuer credit, with liquidity limited by platform ecosystems.

💡 3. On-Chain IPO (e.g., $Figma(FIG.US))

Core Logic: Companies directly issue compliant stock tokens via blockchain, restructuring the IPO process.
Typical Case: Design platform Figma completed the world’s first compliant on-chain IPO, reducing underwriting costs from 3–7% to <1%, enabling 24/7 global trading and smart contract-automated dividends/voting.
Advantages & Innovations:
- Cost Revolution: Eliminates fees for intermediaries like investment banks and clearinghouses;
- Global Liquidity Pool: Attracts cross-timezone investors, accelerating price discovery;
- Embedded Compliance: KYC/AML and securities regulations enforced via smart contracts.
Challenges: Requires adaptation to regulations (e.g., SEC compliance), and institutional investor acceptance remains unverified.

🔐 4. Private Equity Fractional Tokenization (e.g., Robinhood’s OpenAI Tokens)

Core Logic: Indirectly holding unlisted company equity via SPVs (Special Purpose Vehicles), then fractionalizing into small-denomination tokens.
Typical Case: Robinhood issued OpenAI equity tokens (minimum $0.5 investment), but OpenAI denied collaboration, sparking "fake equity" controversy.
Advantages & Innovations:
- Lowering Private Investment Barriers: Retail investors can access top unlisted firms like SpaceX and OpenAI;
- Creating Secondary Markets: Solves illiquidity in private equity;
- Flexible Derivative Design: Tokens carry economic rights (dividends) without governance rights.
Challenges:
- Legal Risks: Unauthorized issuance may breach equity agreements (e.g., OpenAI’s statement);
- Pricing Disputes: Off-chain valuations may diverge from on-chain prices.

💎 Core Comparison of Four Approaches

The table below summarizes the key features of the four stock tokenization models:

Approach	Representative Platforms	Technical Solution	Core Assets	Main Advantages	Current Challenges
Exchange Spot Tokenization	eToro, Robinhood	Ethereum, Arbitrum L2	Listed stocks, ETFs	24/7 trading, DeFi compatibility	Cross-border compliance, custody risks
Structured Product Tokenization	GF Securities (Hong Kong)	Private chain + GF Token	Equity-linked notes	T+0 conversion, capital efficiency	Platform dependency, liquidity limits
On-Chain IPO	Figma	Compliant security token protocols	Company new shares	Underwriting costs <1%, global liquidity	Regulatory adaptation, institutional acceptance
Private Equity Fractionalization	Robinhood (OpenAI Tokens)	Arbitrum L2 + SPV structure	Unlisted company equity	Retail access, liquidity release	Legal authorization gaps, pricing disputes

💎 Summary

Stock tokenization is reshaping traditional financial market paradigms:

Exchange Spot & On-Chain IPO focus on enhancing efficiency and accessibility of listed assets;
Structured Products & Private Tokenization expand asset class boundaries but require balancing innovation and compliance.
Future trends will revolve around "compliant technical architectures" (e.g., KYC-embedded blockchains) and "economic-governance rights separation" models to reconcile technological openness with corporate control.

Personal views are not investment advice

Virtual Asset Trading Access: $GUOTAI JUNAN I(01788.HK), $Futu(FUTU.US), $FOSUN INTL(00656.HK)$CM BANK(03968.HK), $VICTORY SEC(08540.HK), etc.;
Stablecoin Issuer-Related: Yuanbi Technology-related ($ZA ONLINE(06060.HK), $GOFINTECH QUANT(00290.HK), $Z FIN(01168.HK), etc.), $JD-SW(09618.HK), $STANCHART(02888.HK), and state-owned applicants;
Hong Kong Virtual Asset Exchanges (VATP Licensed): $OSL GROUP(00863.HK), $HKE HOLDINGS(01726.HK)$LIANLIAN(02598.HK), $Futu(FUTU.US), $PUXING ENERGY(00090.HK) (holds Hashkey);
Stablecoin Downstream Applications: $YEAHKA(09923.HK), $GOLDSTREAM INV(01328.HK), $LIANLIAN(02598.HK)
RWA-Related: $CRYPTO FLOW(08198.HK), $SENSETIME-W(00020.HK), $ETHK LABS INC.(01931.HK), $PHANCY(06682.HK), $LINEKONG(08267.HK), $RUIFENG RENEW(00527.HK), $FOSUN INTL(00656.HK), $GOFINTECH QUANT(00290.HK), $SYNAGISTICS(02562.HK), $YUNFENG FIN(00376.HK), $DL HOLDINGS GP(01709.HK), $EASOU TECH(02550.HK), $VOBILE GROUP(03738.HK), $CMGE(00302.HK), $GCL TECH(03800.HK), $LINKLOGIS-W(09959.HK), $COOLPAD GROUP(02369.HK), $GREENLAND HK(00337.HK), $DMALL(02586.HK)
U.S. Stablecoin Direct Issuers: $Circle(CRCL.US)
U.S. Trading Platforms & Ecosystem Partners: $Coinbase(COIN.US), $Robinhood(HOOD.US)
U.S. Traditional Financial Institutions in Stablecoin: $JPMorgan Chase(JPM.US), $Bank of America(BAC.US), $Interactive Brokers(IBKR.US), $Citigroup(C.US)
U.S. Innovative Tech & Infrastructure Firms: $Mega Matrix(MPU.US)
U.S. Payment & Fintech Companies: $Paypal(PYPL.US), $SoFi Tech(SOFI.US), $Visa(V.US)