Tokenized stocks represent traditional securities and can include shares in publicly traded companies, including major tech companies like Tesla, Apple and Facebook. These are digital assets that are backed by traditional stocks and give owners the same benefits as owning the underlying stock itself. Tokenized stocks are a digital representation of an underlying traditional asset, like a publicly traded equity. Therefore, the value of tokenized stocks comes from the value of the traditional asset. For example, the value of digital stock is collateralized with an equivalent amount of the traditional security (i.e., $100 of the debt derivative would be collateralized with $100 of the traditional security). This allows tokenized stocks to mirror the economic performance of the underlying traditional asset.
Q: What are tokenized stocks?
A: 1. Digital representations of traditional stocks that mirror their economic performance.
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