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Tokenized stocks are a synthetic wrapper with tokens that track real stocks much like derivatives, suffer from low liquidity and are very similar to what contracts for difference (CFDs) brokers already offer

July 2, 2025 //  by Finnovate

Robinhood, Kraken, Gemini, and a few other crypto exchanges now offer tokenised stocks outside the US, while Coinbase wants to bring them into the US. While platforms are currently offering listed stocks, a key feature of tokenised stocks is their potential to make unlisted shares of private companies tradable. Robinhood has demonstrated this by rolling out tokenised shares of OpenAI and SpaceX to users in Europe. Despite the many claimed benefits and loud voices supporting them, some critics are pointing out the drawbacks. Anton Golub, the Chief Business Officer at crypto exchange Freedx, questioned the marketing claims and noted that tokenised stocks are very similar to what contracts for difference (CFDs) brokers are already offering in Europe and elsewhere. It’s wrapper,” he wrote in a LinkedIn post. “It’s not real equity,” he added, pointing out that people would be buying tokens that track real stocks – much like derivatives. Furthermore, when it comes to round-the-clock access, liquidity remains a concern. CFDs brokers and retail platforms do offer after-market trading, but in practice, liquidity during those hours is very low. “No market maker can hedge exposure on Saturday or Sunday,” Golub said. “That means there is no liquidity and you’ll be quoted a fake price with wide spreads.” “Tokenized stocks only make sense if they are natively issued by companies themselves [or] they exist as primary asset, not a synthetic wrapper,” Golub added.

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Category: Crypto & Blockchain, Innovation Topics

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