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What are tokenized stocks - and why is this the future of investment?
Crypto technologies have entered the stock market. Securities are no longer papers, but something virtual. We tell you how tokenized shares work and how they will change
Cryptocurrencies have become an integral part of the financial market. But today they are no longer the only way to use blockchain technologies in finance.
Crypto assets—tokenized shares, bonds, and other securities and financial instruments—are becoming increasingly popular. Let's understand what tokenized shares are and how you can purchase them.
How it works?
Tokenized shares are securities converted into a digital security token using blockchain technology. A security token is backed by a real asset and is tied to its value.
It is impossible to fake such a digital promotion. Unlike ultra-volatile cryptocurrencies, which can quickly rise in price and just as rapidly fall in price, tokenized shares are considered more reliable assets, as they are characterized by material rights.
In fact, these are real shares of the company: they certify ownership, provide the opportunity to receive dividends and real income from the difference in quotes. All this is secured by a smart contract that manages the tokens - a computer program that monitors and ensures the fulfillment of obligations under the transaction.