What are tokenized shares, a new way of investment in securities market

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Shifts in the digital age are reshaping our lives in so many ways. Tech and crypto enthusiasts seek efficiency, speed, and easy access in all aspects, industries, and sectors. The ability to communicate and make financial transactions from every corner of the planet creates a strong push for financial technology. 

With the artificial intelligence achievements some companies develop, hedge fund management and portfolio management have been backed up with blockchain technology also. Blockchain and cryptocurrencies today have more impact on complex sectors like investment in securities. 

Recently, you may have discovered a new way of investing tokenized shares. The first of this kind was launched by the national stock exchange of Seychelles in 20219. 

From then on, we could see many big companies, like Tesla with its Tesla Token, issuing tokenized securities to enable investors to invest even with a small fraction of capital. 

Between rental investment, life insurance, or the Retirement Savings Plan), there are many ways to invest your money. 

It’s all about knowing exactly what you want to achieve long-term. 

Also, buying a share in a company can turn out to be a very good investment if you study and think carefully about your project before you start. For many, investing means, above all, buying shares. By buying a share of a company, you thus become a sort of discreet collaborator and receive a regular sum directly linked to the company’s profitability.

If you are new to this and don’t know much about it, plenty of guides online tell you how to buy stocks clearly and precisely.

Depending on the company you choose to invest in, your investment will be more or less profitable. Ideally, it would be a matter of having shares in a listed company that is particularly well placed within its market. 

Unfortunately, this precise analysis of the situation of companies takes time and can be particularly confusing. Fortunately, for the past few months, buying shares online via cryptocurrency has been possible. We then speak of “tokenized” shares.

Tokenized shares – a small revolution

Until now, only real money could be used to obtain company shares via a trading platform. These tokenized shares, therefore, constitute a real small revolution in the financial investment market. Indeed, with these famous “tokens,” you can now invest in cryptocurrency without commission. But that’s not all! With this new possibility, the viable option is to buy fractions of shares which will be less expensive but will allow you to keep all your rights (in particular that of dividends). This is the case with Tesla’s tokenized shares, Tesla Token, which is one of the first of a kind. 

Thanks to this novelty, which is organized like the systems of online brokers, Europeans can now invest in large international companies such as Tesla, Amazon, Google, or Apple. The cost of the shares of these companies being particularly high is where the possibility of buying fractions of shares is particularly interesting. The regulations are the same as those applied to other securities.