Tokenized Stocks: Key Differences Between Platforms

The tokenized stock market has grown significantly in recent years, but the differences between various platforms are often overlooked. One key distinction lies in the legal and operational claims attached to each token.

For instance, Robinhood's Stock Tokens are debt securities that track stocks and ETFs, but confer neither legal nor beneficial rights in those underlying securities. This means users receive economic exposure without ownership.

xStocks takes a more on-chain approach, with tokens designed to be backed 1:1 by the corresponding U.S. stock or ETF held with regulated custody. However, this structure involves a Jersey special-purpose vehicle and collateral accounts monitored by a security agent.

Backpack's tokenized securities start with traditional securities custody as the initial position, governed by New York UCC Article 8. Users can then convert eligible positions into tokenized securities on Solana and redeem them back, presenting tokenization as a convertible form of a securities position.