Purported Benefits of Tokenized Stocks

Companies like Robinhood are offering tokenized US stocks and ETFs as they look to disrupt existing inefficient mechanisms. The following are some of the marketed benefits of tokenized stocks.

1. Faster, 24/5 access
   Investors can trade U.S. equities nearly around-the-clock via blockchain (24 hours a day, five days a week), rather than just during U.S. market hours.
2. Lower friction & faster settlement
   Tokenized shares, backed 1:1 by real U.S. stocks held by exchanges like Robinhood, use blockchain which allows quicker settlement and higher transparency compared to traditional cross-border trades
3. Zero commission (on trading)
   Commission-free trades (though there may be minor currency conversion fees), reducing friction and cost
4. Broader access to private assets
   Investors can gain exposure to traditionally inaccessible private companies like SpaceX and OpenAI via tokenized access
5. Veriable Audit Trails – Blockchain offers verifiable audit trails. Even though exchange still controls the backing shares, users can independently verify balances on-chain — increasing perceived trust.

Can any of the above not be achieved without Blockchain ?

Yes, all benefits 1 through 4 could be achieved using automation around a centralized ledger. The only truly unique benefit would be 5, independent verifiable auditing provided the exchange allows it to be.

Blockchain here is more a feature than a necessity. But it does enable new capabilities, especially around programmability, transparency, and cross-platform utility — which a centralized ledger wouldn’t easily support.

Companies like Robinhood are trying to differentiate themselves as a crypto-native broker. Offering tokenized stocks on-chain appeals to:

• Crypto-savvy investors
• Developers looking to build composable finance tools
• Future markets where regulators permit more DeFi-style investing