There are key differences when it comes to cryptocurrency vs. stock.
A tokenized stock is essentially the same thing as a share of equity (stock) in a publicly traded company. The difference is tokenized stocks come in the form of digital tokens held in a wallet, rather than a digital asset held by a third party custodian, such as a broker.
When an investor buys a traditional stock on an exchange or during an initial public offering (IPO), their shares typically arrive in an investor's brokerage account. The process for tokenized stocks is identical but with one key difference: because these shares are based on a blockchain, they can be bought and traded on a cryptocurrency exchange and held in a personal, digital "Wallet".
The tokens can then be listed on a cryptocurrency exchange where they can be bought and traded like any other cryptocurrency. Those who hold a stock token gain exposure to the underlying stock pretty much as if they owned it, including dividend payouts where applicable. However, they don't actually own shares, they own a derivative that is a digital representation, collateralized by actual the shares.
Tokenized stock trading isn't the same as trading actual stocks. The tokens are cryptocurrencies and can only be traded as such.
Trading tokenized stocks involves many of the same steps required for trading cryptocurrency in general.
1. Research the PINX Global Exchange Website.
2. Create an account on the exchange.
3. Fund your account.
4. Buy the stock token of your choice.
The chief reason that many companies are tokenizing equity is the same reason that they issue shares of stock: To raise capital. There can be some distinct advantages to raising additional capital by issuing digital tokens, rather than going through the traditional method of either going public (IPO) or issuing additional shares.
The tokens issued by companies in lieu of stocks have the same characteristics and functions, and thus, are securities. That means they're subject to registration and filing requirements dependent on jurisdiction. That's brought on security token offerings (STOs), which are more or less the same as initial coin offerings (ICOs), but with the added caveat that the company issuing the tokens acknowledges that the token represents equity and is therefore a security.
Many tokenized stocks will be familiar to most investors. They include stock tokens of companies like Twitter, Tesla, Apple, and Alibaba, as well as some Exchange Traded Funds (ETF's)
Tokenized stocks provide some advantages over trading regular shares of equity with a licensed brokerage, including:
Market Accessibility.The world is regionalized and creates artificial barriers to market participation. These barriers to entry whether cost, qualification, accessibility or another are mitigated through the tokenization of securities, and opens the global market without jurisdictional limitations.
Greater liquidity.Because a broader segment of the population can access tokenized stocks compared to traditional shares, these tokens can have greater liquidity than their counterparts that are traded thinly on major brokerages.
Faster transaction and clearance time.Depending on the network and exchange, token transactions might settle in a matter of minutes. Compare this to traditional stock transactions, which may take a number of business days to clear.
Fractional shares are easy to obtain. Fractional While fractional stocks are only available from specialized firms, fractions of any tokenized stock are readily available wherever it is traded. Efficient Execution. The automated feature of the blockchain remove not only the number of personnel required for trading on a traditional exchange, but also the bias those people may impose on trade execution.
24/7 trading. Tokenized stocks can be traded any time of day, any day of the week. The cryptocurrency markets never close.
In theory, anyone can trade tokenized stocks. That's the beauty of cryptocurrency in general – there are no entry barriers to the market other than an internet-connected device and some currency to get started with.
Tokenized stocks might be ideal for investors who want but don't have access to traditional financial markets. For example, someone without a bank account can't register with a stock brokerage, but they could potentially trade tokenized stocks.
To do so, a potential stock token investor might buy Bitcoin with cash at a Bitcoin ATM, send it to their own wallet, and deposit it at an exchange that trades tokenized stocks. As long as they are able to verify their identity to pass KYC requirements, they'd be unlikely to encounter any problems with this process.
The PINX Global Market is agnostic and permits for the listing of companies from every industry. The only exception is those companies engaging in activities deemed illegal in the company's home jurisdiction.
The only companies listed on the Pinx Global Exchange are verified. A PINX Verified Company means the corporation is validly existing, represented by the officers of record, has a minimum of 1 year of financials reported to PINX and has collateral securities and/or assets on Deposit.
An ordinary share is a traditional "stock" or unit of ownership in a corporation.
A "Tokenized Stock" is digital representation of an "Ordinary Share".
The Alternative Reporting Standard is the quarterly reports submitted to the market to remain compliant. This standard is considered alternative because it reports direct to the market and not a 3rd party agency or jurisdictional oversite committee.
Companies are required to file quarterly reports. Many companies will elect to share additional news more frequently.
A security will most frequently be flagged for a delayed report to the market. In some instances, if the company appears to require additional scrutiny, it may also be flagged.
A flag may be removed by bringing all market information current and providing any transparency required to satisfy the market.
Not at this time, however, Corporate Press Releases and Market Updates can be found on the PINX Exchange Website and permanently affixed to the companies NFT Profile
On any of the PINX Global Market Pages, simply type the ticker symbol and submit. A real time quote will populate.
Short selling on the Block chain is not possible.
Short selling on the Block chain is not possible.
No, all trading is verified by the block chain and not subject to market, or 3rd party manipulation.
No trading cannot be halted, however if a concern arises, the Market Administration will address the concerns with the listed company and make the details pertaining to that token public information.
The PINX Global Market is available 24 hours a day, 7 days a week, 365 days a year, with the exception of scheduled maintenance.
Every listed company is required to offer contact information as part of their quote, alternatively, contact information may be found on the company's website, and/or state filings.
No, all transactions are executed from a personal wallet and direct to the market.
To trade on the PINX Global Market, KYC (Know Your Client) details must be submitted. Upon verification and acceptance, an individual investor may participate at will.
-Validly Existing
-No Disqualified Principles
-Accurate Cap Table
-Viable Business
-Reviewed Financials
-Market Application
-Interview
Complete the requirements for application. Once the application is approved, introductions will be made to the Market Support Group for next steps to tokenize and list.
No, however reviewed statements are required.
Yes, Companies listed on a traditional exchange may dual list on the PINX Global Market. However, those securities currently trading are not the same securities that would Trade on the PINX Global Market.
Yes, a company that does not maintain its quarterly reports or engages in prohibited activities may be removed from the PINX Quotation System.
Primarily Based on availability, in part based on request by the company or simply assigned based on the name of the company.
Trading Symbols are not changed.
The Market Support Group handles corporate actions and reports them to PINX Global Exchange.
PINX Global Markets is not a promoter, sales agent or broker for any of the listed companies. PINX Global Market is a conduit through which simple token purchases are made available to buyers. It is the responsibility of the company to market, introduce and attract investment capital through the PINX Exchange.
Yes, for early capital prior to becoming exchange listed, PINX offers Launchpad services.