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Crypto.com Launches Tokenized Stock Derivatives

Crypto.com has launched tokenized derivatives that track 1,500 U.S. stocks and exchange-traded funds (ETFs).

The introduction of tokenized stock derivatives comes as the crypto exchange looks to tap traditional equity markets.

Privately held Crypto.com said that eligible users in Europe and other approved markets can access stocks such as Nvidia (NASDAQ: $NVDA) and Tesla (NASDAQ: $TSLA), as well as a range of ETFs.

Tokenized stocks are available to investors for as low as $1 U.S. and trade around the clock.

Tokenized stock derivatives are blockchain-based contracts that track the price of traditional equities or ETFs without giving the investor legal ownership or shareholder rights.

If Apple’s stock rises, the tokenized derivative will follow that move but the investor isn't an Apple shareholder and has none of the voting or legal rights that come with being a stockholder.

Still, the tokenized representations allow investors to trade stocks around the clock and to gain from the rise in share prices.

Crypto.com is world’s 11th largest cryptocurrency exchange, according to data from Coingecko.

Tokenized stocks have reached about $2.49 billion U.S. in value, up 600% over the past year, according to data from RWA.xyz.

A growing number of exchanges and blockchain firms are moving to bring stock and ETFs onchain.

U.S. bank Citigroup (NYSE: $C) has estimated that tokenized securities could become a $5.5 trillion U.S. market by 2030, including $2.6 trillion U.S. in tokenized stocks.

As a private company Crypto.com’s stock does not trade on a public exchange.