Robinhood recently announced the introduction of tokenized stocks and ETFs for users in Europe, allowing for more seamless trading on the blockchain.
Tokenization involves creating digital representations of assets on the blockchain, providing faster trading and settlement, but investors should be cautious about unique risks.
Unlike traditional equity, tokenized assets like those of OpenAI and SpaceX do not grant ownership rights, voting privileges, or dividends.
Investors considering tokenized stocks should be wary of the lack of financial disclosure, restrictions on selling, legal ambiguity, and regulatory challenges in this emerging financial landscape.