The adoption of blockchain technology isn’t limited to any particular industry, from finance to healthcare. Decentralized Finance may seem to be a dubious concept for many; however, proper research and understanding help in discovering the underlying benefits. As far as this write-up is concerned, we’ll discuss the stock tokens development.

Stock Tokens – Traditional Stock Blended With Crypto

The title says it all! Stock tokens are traditional stocks that we come across in stock exchange markets. Whenever we buy any stock listed on the exchange, it means that we hold equities or shares of that company. And we make the payment through fiat currency. Usually, the stocks bought in any exchange will get credited to our Demat account after three days of making the payment. 

One way or the other, stock tokens are similar to traditional ones, but the stocks will be in the form of crypto tokens. So, these stock tokens can also represent a company’s equity, which is similar to the ones listed on the traditional stock exchanges. But the notable difference is that anyone willing to buy stock tokens can buy fragments of the share and not the share as a whole, unlike traditional stock markets. All the stock-based tokens will be traded on stock tokens platforms, and the purchased tokens will get credited to the crypto wallet that is linked to your blockchain account. 

What Are The Benefits Of Stock-Based Tokens?

Traditional stock exchanges are known for high brokerage fees, a.k.a, commission fees. Whereas in stock token exchanges, there is zero commission fee and also facilitates improved tradability and liquidity. Most of everything, the stock-based tokens are pinned with smart contracts to ensure authenticity and security. 

Stock Tokenization Platform Development 

Basically, a stock tokenization platform is a medium for purchasing and selling stock tokens, and these platforms are built on any blockchain technology. Here, you need to know about pegged tokens. A pegged stock token is a crypto token, but it holds the value of a stock. So, every stock-based token is first minted on the stock tokenization platform, listed, and traded. 

Decentralized financial services are expected to revolutionize the way we get financial services. Hence, you can consider stock tokenization platform development, with which you can advance the way people make investments in stocks. 

Traits Needed For A Stock Tokens Platform To Be Successful? 

• Stock Fragmentation

In traditional stock exchanges, the buyer has no other option except to buy the share that is listed. Whereas the stock token platforms will let buyers buy a fragment of share or equity.  This feature will increase the flexibility of buyers and ultimately lead them to make more purchases/transactions.

• Liquidity

The liquidity aspect of the platform depends on the blockchain tech used and also the number of traders available. Cross-chain integration into the platform will help in achieving a strong ground in terms of liquidity, and hence, traders will find their trading pairs more easily. 

• Accessibility

One effective idea to make your stock-based tokenization platform quite interesting is to enable both traditional stock exchanges and stock token exchanges.

• Multiple Services 

Enabling your platform to wear multiple hats is always advantageous. For example, you can customize your platform so that it supports crypto lending, exchanges, token launches, etc.

How To Perform Trading On A Stock Tokens Platform?

• First, traders will complete the level-1 KYC verification and go to the homepage where the token stocks are listed.
• The buyer can select the token he/she wishes to buy and choose the trade option. 
• Before proceeding with the trading, the user will have to complete the level-2 KYC formalities, post which they’ll have to agree to the trading service agreement.
• Finally, once all these steps are done, the respective cryptocurrencies will have to be transferred.  

Choose Us For Stock Tokenization Platform Development

The concept of stock tokens is relatively new and needs a better understanding if you are willing to start a business venture out of it. We, Appdupe, are a team of seasoned blockchain subject matter experts and developers from whom you can get the stock tokenization platform developed. Further, we extend development services for crypto exchanges, NFT marketplaces, NFT gaming, crypto launchpads, and DeFi platforms. You can contact us for further proposals.