Tokenization of Stocks: An Important Step in Web3 Finance

Recently, the tokenization of US stocks has become a hot topic in the crypto market. This is not just a new hotspot, but represents an important test for on-chain finance: Can the Web3 world truly support the issuance, trading, pricing, and redemption of mainstream financial assets?

From Experiment to Compliance: The Evolution of Stock Tokenization

The tokenization of stocks is not a new concept. As early as 2019, some trading platforms attempted to tokenize U.S. stocks but could not continue due to regulatory reasons. Now, this concept has reemerged, evolving from grassroots experiments into a compliant path led by licensed institutions.

Taking a well-known platform as an example, its stock tokenization service launched in Europe adopts a "broker proprietary + on-chain issuance" closed-loop model. The platform is licensed in the EU, purchases actual stocks, and issues tokens that are 1:1 mapped on the blockchain. From custody, issuance to clearing and settlement, the entire process is streamlined, providing users with a trading experience that closely combines securities accounts and crypto wallets.

This model is not just about putting a price on the chain, but rather establishing an "on-chain securities trading system" that can almost operate independently at the structural level. For the crypto industry, this is the first time we have seen traditional brokers deeply deconstructing the on-chain structure of assets.

The Background of the Rise of Stock Tokenization

The rise of stock tokenization is not a coincidence, but rather the result of multiple key factors changing simultaneously:

1. Shift in regulatory attitude: The European MiCA legislation has been implemented, and US regulatory agencies are also beginning to send positive signals.

2. Improved compliance infrastructure: Multiple platforms have obtained relevant licenses in Europe to provide compliance support for stock tokenization.

3. On-chain funds seek new outlets: Market demand for assets with real value support is increasing.

4. The integration of traditional finance and the crypto world deepens: from large asset management companies to banks, traditional financial giants are actively participating in the construction of blockchain infrastructure.

Impact on the Cryptocurrency Market

Stock tokenization poses both opportunities and challenges for the crypto market:

Advantages:

1. Provide high-quality asset options for on-chain funds.
2. Improve overall market quality and promote the elimination of inferior projects.
3. Provide cryptocurrency users with a direct channel to participate in the stock market.

Challenge:

1. It may distract native cryptocurrency projects' attention and funds.
2. Possible impact on the financing environment of crypto projects.

Outlook

Stock tokenization represents the migration of asset boundaries to the blockchain and the beginning of traditional finance adopting on-chain methods to organize trading and custody processes. Once this trend is established, it is likely to be irreversible.

It prompts us to rethink: can Web3 truly become a system that carries mainstream assets and actual trading activities? Can we create a securities system that is more efficient and transparent than traditional markets through an open financial structure?

Stock tokenization may not show explosive growth, but it is likely to become a highly resilient infrastructure evolution path in the Web3 world, worthy of close attention from market participants.