Stock Tokens
What are Stock Tokens?
A Stock Token is an ERC-20 digital asset carrying a contractual right to redeem with the issuer for the cash (market) value of a linked security - a stock, commodity, or index ETF.
It tracks the security’s price (including reinvested dividends) and is backed by the issuer’s reserves of the underlying, or cash/equivalents when the underlying is on loan.
It gives economic exposure to the underlying and can be self-custodied and transferred on-chain.