Introduction
Crypto exchanges increasingly offer "stocks". But not all tokenised stocks are equal: there are two fundamental variants with different legal and tax consequences.
What are tokenised stocks?
Tokenised stocks are digital representations of shares on a blockchain, giving exposure to household names like Tesla, Apple or SpaceX without a traditional brokerage account. The crucial difference is what you actually own.
Type 1: real stocks
With real stocks you own an actual share, usually held under US securities law (New York UCC Article 8). The token represents that share one-to-one; custody sits with an SEC-regulated broker.
Characteristics:
- You are the legal owner of the share
- Entitled to dividends
- Voting rights (sometimes)
- Transferable to traditional brokers (Schwab, IBKR) via ACATS/DTCC
- If the exchange fails, the shares remain yours (segregation)
Type 2: wrapper tokens
With wrapper tokens you own a contractual claim on an issuer (usually in Jersey or another offshore jurisdiction) who holds the shares and guarantees 1:1 backing.
Characteristics:
- You own a claim, not a share
- Usually no dividend rights (or synthesised)
- No voting rights
- Not transferable to traditional brokers
- If the issuer fails, you are a creditor — not a shareholder
Comparing legal status
| Aspect | Real stocks | Wrapper tokens |
|---|---|---|
| Ownership | Share | Claim on issuer |
| Jurisdiction | US (UCC Art. 8) | Jersey / offshore |
| Dividend | Yes | Rarely / synthetic |
| Voting | Sometimes | No |
| Bankruptcy segregation | Yes | No |
| ACATS transfer | Yes | No |
Dividends and tax treatment
Real stocks pay dividends like any share — in USD, with treaty withholding where applicable (W-8BEN: 15% for Dutch residents instead of the 30% US default). Wrapper tokens vary per issuer: some embed dividends in the token price, others skip them entirely.
For Dutch tax filing this matters: real stocks generally count as securities in box 3; wrapper tokens may be treated differently. Consult a tax adviser.
What do you really own?
- Real stocks: the shares sit with a broker/custodian, segregated from the exchange. Yours.
- Wrapper tokens: it depends on the issuer's solvency. You are a creditor.
For short-term speculation the difference barely matters. For the long term and larger amounts, it does.
Frequently asked questions
Are xStocks real stocks or wrapper tokens?
Most xStocks variants are wrapper tokens issued by an SPV.
Can I trade real stocks 24/7?
Often 24/5 — outside exchange hours pricing relies on the platform's internal market makers.
What is UCC Article 8?
The US Uniform Commercial Code Article 8 governs securities ownership and guarantees that a "security entitlement" is your property, even through intermediaries.