How it works
Tokenization does not change what you are exposed to. It changes how that exposure is held, moved and verified.
STEP 01
It begins with an exchange-listed share or ETF unit — the same instrument traded on public stock exchanges, with prices set in regulated markets.
NVDA
Listed
AAPL
Listed
SPY
Listed
MSFT
Listed
QQQ
Listed
TSLA
Listed
STEP 02
The security is purchased through a regulated broker and held with a qualified custodian in segregated accounts, reconciled daily against token supply.
Illustrative
STEP 03
An issuer mints tokens only against custodied units, under published terms that define holder rights, fees, redemption and eligibility.
Custodied
1 share
Minted
1 sNVDA
STEP 04
Tokens are recorded on public networks. Supply on every network is visible on-chain and reconciled against custody records.
STEP 05
Eligible users can hold tokens in self-custody, transfer them between allowlisted wallets, or use them in permitted integrations. Restrictions are enforced by the contract.
Wallet · 0x8f3…a21c
Illustrative
Architecture
Select a layer to see what it does and what it guarantees.
Layer 01 / 06
The economic exposure starts with a real, exchange-listed security — for example a share of a company or a unit of an ETF — purchased through a regulated broker.
Actual issuance, backing, custody, redemption rights, and investor protections depend on the issuer and jurisdiction.
Lifecycle
Mint
An authorised participant delivers cash; the broker buys the security; the custodian confirms receipt; the issuer mints the equivalent tokens.
Redeem
An eligible holder returns tokens; the issuer burns them; the custodian releases the security, which is sold or delivered per the issuer's terms.
Reconcile
Supply on every network is compared with custody positions and independently attested on a published schedule.
Important