Do stock token holders own actual US stocks?

Do stock token holders own actual US stocks?

Stock tokens are created based on actual stocks or ETFs.

However, holding a stock token does not mean the underlying stock enters your brokerage account.

Instead of actual stocks, users hold tokens in their personal wallets that are designed to reflect economic performance such as stock prices and dividends.

Where are the actual stocks held, and what rights may token holders receive?

The issuer manages the actual stocks

The actual stocks are held in a brokerage account at a custodian used by the token issuer.

The user’s personal wallet receives stock tokens, not actual stocks.

Depending on the issuer, dividends may be paid separately to the personal wallet or used to buy more of the same asset and reflected in the token.

Rights of token holders

• Voting rights

  • Stock token holders are generally not registered as shareholders of the company and cannot exercise voting rights.
  • Depending on the issuer, users may be able to submit voting preferences or use proxy voting.
  • Contact customer support to check whether rights are provided for a specific product on Dollarparking.

• Stock splits and mergers

  • Stock splits:
    • Token prices and quantities, or the amount of actual stock represented by each token, are adjusted so the total asset value is maintained.
  • Mergers, spin-offs, delistings, and other events:
    • Depending on the event terms and the issuer’s process, these events may be reflected in the following ways:
      • Token quantity adjustment
      • Cash settlement
      • Redemption
      • End of trading
    • Check each product notice for the specific process.
  • Trading may be temporarily suspended while corporate actions are reflected and prices and rights are adjusted.