# What is a tokenized stock? Token vs share explained

> A tokenized stock is a token that tracks a listed share. Who issues it, what you hold, how dividends and voting work, and how it differs from a real share.


A tokenized stock is a blockchain token that tracks a listed company's share, issued by the company itself or by a firm that holds the share or provides exposure to it. The full answer sits in the issuer's terms, because with a third-party token, such as xStocks, the company's share register does not list you. Cherry (cherry.fun) is a wallet-to-wallet messenger and community app for crypto, and its Trading Terminal mini app lists one family of these tokens, xStocks.

## How a tokenized stock works

An issuer mints the token and stands behind it. The SEC staff's Statement on Tokenized Securities of 28 January 2026 sorts the models: a company tokenizes its own shares, or a third party issues a token backed by shares in custody, or one with synthetic exposure only. A third-party token, the statement says, "may or may not confer upon the holder of the crypto asset any rights as a holder of the underlying security."

xStocks are issued by Backed Assets (JE) Limited, a Jersey company, as its own securities, with the shares held as collateral in custody. xstocks.com described them in October 2026 as "1:1 backed tokenized US equities and ETFs, tradeable 24/7". Kraken agreed to acquire Backed Finance AG, the company behind xStocks, on 2 December 2025.

Kraken's xStocks FAQ, October 2026: "Holders of xStocks have no voting rights and no legal claims to the underlying company shares". Under the Backed Assets Base Prospectus dated 8 May 2026, when the issuer reinvests a dividend or deducts a management fee, a smart-contract step it calls Rebasing adjusts the token count in every holder's wallet. Share splits are adjustment events the issuer handles at its discretion, without investor consent.

Eligibility, from xstocks.com in October 2026: "xStocks are not available to residents of the United States, United Kingdom, Canada, Australia, or sanctioned jurisdictions." and "xStocks are not available in the United States or to U.S. persons". The site lists Solana, Ethereum, BSC and other chains.

Ondo Global Markets came to Solana on 21 January 2026 with more than 200 tokenized US stocks and ETFs, according to the Solana Foundation.

## Tokenized stocks vs regular stocks

| | xStock (tokenized stock) | Share held at a broker |
|---|---|---|
| What you own | The issuer's token, backed 1:1 by a share in custody | The company's share |
| Voting | None | Yes, usually by proxy |
| Dividends | Reinvested into more tokens | Paid in cash, when the company pays one |
| Trading hours | 24/7 | Exchange sessions |
| Who may buy | Not US, UK, Canadian or Australian residents, or sanctioned jurisdictions (October 2026) | The broker's customers |
| Where it settles | On-chain, can sit in your own wallet | Broker account |

## Stock tokens that hold no share

A stock perp is a perpetual contract on a share's price: price exposure, with no token or share behind it (see [perps](https://cherry.fun/learn/glossary/perps-crypto/)). A [pre-IPO token](https://cherry.fun/learn/glossary/pre-ipo-token/) comes from an intermediary and gives economic exposure through a special purpose vehicle, with no shareholder rights.

## Example on Cherry

The [Trading Terminal mini app](https://cherry.fun/learn/features/trading-terminal-mini-app/) has a Stocks & RWAs board that lists xStocks. Check the Verified mark and the RWA tag, because tokens that copy xStock names also turn up in its full list. A stock token trades through the same swap ticket as any Solana token, and your own wallet signs; with an external wallet, Cherry never holds the funds. The token then shows under Holdings in the Terminal's Portfolio, beside your memecoins.

The Trading Terminal room had 1,076 members and 5 stars from 3 reviews in October 2026.

[Trading Terminal on Cherry](https://chat.cherry.fun/@trade)

Open chat.cherry.fun/@trade to see the board.

## Related terms

- [Real-world assets on Cherry](https://cherry.fun/learn/features/real-world-assets/): off-chain assets as tokens.
- [RWA in crypto](https://cherry.fun/learn/glossary/rwa-crypto/): the wider category.
- [Where to buy tokenized stocks](https://cherry.fun/learn/compare/where-to-buy-tokenized-stocks/): venues compared.
- [Are tokenized stocks safe?](https://cherry.fun/learn/guides/are-tokenized-stocks-safe/): the risks.

## FAQ

### Do tokenized stocks pay dividends?

It depends on the issuer's terms, and neither xStocks nor Ondo pays cash. Kraken's xStocks FAQ says "Dividend payouts will be automatically reinvested into more of the same token", so your balance grows. Ondo's documentation says its tokens put dividends back into the referenced stock and reflect them in the token's price.

Nothing here is financial advice. Tokens can lose value.

## Sources

- [xStocks: tokenized US equities and ETFs](https://xstocks.com/)
- [Kraken's xStocks risk disclosure and FAQ](https://www.kraken.com/legal/xstocks)
- [Backed Assets Base Prospectus and legal documents](https://assets.backed.fi/legal-documentation)
- [Kraken to acquire Backed, 2 December 2025](https://www.payward.com/press-release/kraken-acquires-backed-xstocks-expansion)
- [Ondo Global Markets on Solana, Solana Foundation](https://solana.com/news/ondo-global-markets-tokenized-stocks-etfs-solana)
- [Corporate actions in Ondo's documentation](https://docs.ondo.finance/ondo-stocks/corporate-actions)
- [SEC staff Statement on Tokenized Securities](https://www.sec.gov/newsroom/speeches-statements/corp-fin-statement-tokenized-securities-012826)
- [Proxy voting, in Investor.gov's glossary](https://www.investor.gov/introduction-investing/investing-basics/glossary/proxy-voting)
- [Trading Terminal on Cherry](https://chat.cherry.fun/@trade)