If you are looking for a way to trade stock tokens, you must find and join a crypto exchange that supports the trading of tokenized assets such as stocks.

A tokenized stock or stock token is a type of crypto token that represents a traditional stock (of a listed company). These crypto tokens represent actual stocks traded on popular exchanges such as NASDAQ and NYSE, thereby allowing people to invest in stocks through a crypto exchange.

What is a tokenized stock and how does it work?

A tokenized stock is essentially a type of crypto token whose value is pegged to a regular stock. While stocks are traded on a stock exchange, stock tokens are traded on a stock token exchange, which is a special type of crypto exchange that supports tokenized stocks.

For a stock token to work, it has to be pegged to a real stock, which is done by using smart contracts. The crypto exchange will buy the underlying stock share from a stock exchange for every stock token that is sold on its platform and stores it in a brokerage account until the time when the user decides to sell their stock token, at which time the exchange will sell the reserved stock and use the proceeds to pay back the user.

At any time, the value of a stock token will replicate the value of the underlying stock.

Traders are favoring stock tokens over regular stocks these days because of the added benefits like the elimination of intermediaries, low charges, and trading without a bank account.

If you are looking for the best platform to start trading tokenized stocks, here you go.

Top Stock Token Trading Platforms 2022

Here are the 5 best and most popular tokenized stock trading platforms out there:

Bitpanda

Bitpanda allows the trading of tokenized stocks in partnership with CM equity. It purchases tokenized stocks from CM Equity and allows users on the platform to buy and trade tokenized stocks. Users on Bitpanda can buy stock tokens of hundreds of top-listed companies around the globe. Unlike most other stock trading platforms, Bitpanda also supports stock dividends, i.e. it will pay dividends to stock token holders every time the listed company pays dividends. Another benefit of trading stock tokens with Bitpanda is that the platform operates 24/7 irrespective of traditional stock market timings.

Bittrex Global

Bittrex Global is another popular cryptocurrency exchange that now also supports the trading of tokenized stocks. It offers stock tokens in partnership with DigitalAssetsAG. For all stock tokens that are purchased on Bittrex Global, the platform buys and reserves actual underlying stocks in a separate account with a licensed bank.

Bittrex Global has stock tokens of many popular listed companies such as Google, Netflix, Amazon, Apple, Tesla, adn others.

Reflection.Trading

Reflection is a global crypto trading platform for tokenized assets such as stock tokens. It allows users to buy, sell and trade stock tokens using stablecoins such as BUSD. The platform supports a large number of stocks on many top stock exchanges around the globe and enables global trading of stock tokens without the need for a bank account.

The native token RUSD is used to maintain liquidity on the platform. RUSD is what users get when they sell their stock tokens on Reflection and can convert RUSD to BUSD or other stablecoins for free.

DeFiChain

DeFiChain is another platform where you can trade many popular tokenized stocks across popular exchanges such as Nasdaq, Tiingo, and Finnhub. In addition to regular features of stock token trading, the platform also allows its users to contribute their stock tokens to liquidity pools in order to maintain liquidity on the platform, for which users are rewarded with the native token DFI. The list of stock tokens available on DeFiChain is even bigger than other stock token trading platforms.

Currency

Currency.com is one of the few regulated crypto trading platforms where you can now also trade tokenized stocks. The platform allows the trading of a range of digital assets, including indices, commodities such as gold, tokenized stocks, government bonds, and other financial assets with cryptocurrencies.

The tokenization of stocks can make stock trading more accessible and convenient for people around the world. They can buy their favorite stocks on any exchange in any country from the convenience of their home even without a bank account. Choose your favorite stock token trading platform from the list above.