TLDR Tech / Crypto
An Overview of Stock Tokenization on Ethereum
Three legal structures govern tokenized stocks: the token as the registered asset itself (BlackRock BUIDL, a permissioned ERC-20), the token as a bare-trust claim with no voting rights (Coinbase stocks on Base), and the token as a price-tracking debt security with no legal ownership (Robinhood Stock Tokens). September 2026 brought concurrent regulatory milestones, including the SEC approving tokenized US stocks for on-chain liquidity pools, the ECB launching Pontes to bridge blockchains with central bank money, and Aave v4 going live with USDC loans collateralized by Coinbase stock tokens on Base, following DTCC's first live tokenized securities trades in July. The practical case rests on 24/7 trading, atomic settlement versus T+1, BUIDL acceptance as collateral on Binance and Deribit, and Dinari's August opening of 724 US stocks to US investors, though most tokenized stocks still exclude US persons and custodian liability plus voting rights remain unresolved.
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