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Robinhood has rolled out 'tokenized' stocks and ETFs. Here's what to know about the crypto-like assets.

  • 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.

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