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79 sats \ 4 replies \ @grayruby 12h \ on: Coinbase launching tokenized US stocks, with holders able to receive dividends Stacker_Stocks

A token is a derivative.

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21 sats \ 3 replies \ @0xbitcoiner OP 12h

They say no.

No derivatives, no IOUs.

Maybe because it’s backed 1:1 by real stocks? I'm not totally sure.

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151 sats \ 2 replies \ @grayruby 12h

If a stock is 100 dollars a share and I give you 100 dollars for a share and you hold the share and give me a token backed by the share then the token is a derivative of the share.

Unless companies are issuing new shares directly as tokens and Coinbase is just the exchange in the middle it is a derivative.

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30 sats \ 0 replies \ @0xbitcoiner OP 12h
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1 sat \ 0 replies \ @optimism 57m

I like your reasoning.

I think that the only reason to tokenize is for the token to be a bearer instrument; everything else is just a variation of custody. Since you cannot do bearer instruments on a permissioned account chain, and they're going to do this on Base, it's not as innovative as they make it sound.

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