this won't really matter much because even if tokenization of stocks is banned you can just create perpetual futures that settle on the price of the real stock. so if you are a crypto only investor (due to your country preventing open capital markets or other restrictions) you will put your money there and then some intermediaries with access to both tradfi markets with actual stock and access to the crypto perpetual futures markets will provide the liquidity and keep prices in sync.

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killerstorm 6 hours ago | parent | next [-]

Perpetuals are OK for trading, but not good for holding as a long-term investments - usually you need to pay interest on any open position.

I guess the appeal of tokenized stock is to do things regulators don't want you to do (e.g. evade capital controls). Otherwise one can just access market directly through a broker.

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jcfrei 5 hours ago | parent | next [-]

I've looked at the xyz:SP500 contract on hyperliquid and it's funding rate seems to be negative most of the time. Currently the annualized rate is around -0 to -2%, so if you hold a long position over a year you will roughly earn 1% on top (negative funding rate means short positions pay funding to long positions). This makes sense because the no-arbitrage principle requires this to be roughly in line with holding an actual SP500 basket and receiving dividends. And you don't pay interest on open positions, you are just holding a derivative and need to meet margin obligations - but you can leverage as much as you are comfortable with.

	▲	RandomLensman 5 hours ago \| parent [-]
		Is there some pricing going on with infinite dividend and funding legs and/or is there sort of supply and demand "cost of carry" thing in the perpetual world?

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chollida1 5 hours ago | parent | prev | next [-]

I'd expect given all the counter party risk you are taking on that you should be paid a small rate to take on a perpetual future or tokenized stock.

Otherwise when the market goes bankrupt you'll be left with nothing and you won't have gotten compensated for the risk of holding the perpetual future or tokenized share.

	▲	spwa4 4 hours ago \| parent [-]
		> Otherwise when the market goes bankrupt you'll be left with nothing and you won't have gotten compensated for the risk of holding the perpetual future or tokenized share. As someone who "held" multiple bitcoin on TradeHill I must say: this sounds exactly like how crypto works ...

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mikeodds 6 hours ago | parent | prev [-]

Reduced barrier to trading too. No KYC, single USDC deposit and you can trade equities with leverage globally vs kycd traditional alternatives.

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trollbridge 5 hours ago | parent | prev | next [-]

In the U.S. things like this (eg Contract for Differences) are illegal, and the SEC regulates these sort of things.

	▲	jcfrei 5 hours ago \| parent \| next [-]
		I don't think US investors are the target here. They can already make bets on the SP500 in a number of ways: ETFs, futures, options etc. - unless you wanna make a highly leveraged bet which traditional broker margin requirements will prevent. The tradfi venues are probably even a bit cheaper (though we are talking about a few bps difference).
	▲	wmf 5 hours ago \| parent \| prev [-]
		If you want to trade MSFT in the US just... use Robinhood?

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Muromec 4 hours ago | parent | prev | next [-]

Cyberpank is having a really nice and modern mobile app for your bank but all the interface doesn't give you any hint that transfering money out of the country is even possible.

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decidu0us9034 3 hours ago | parent | prev | next [-]

Sure but wasn't the whole pitch of tokenization, RWA, all of this cycle's narrative, that crypto could function as an investment vehicle for the normie retirement account holder, that it wasn't just derivatives and speculating on short-term price movement?

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5 hours ago | parent | prev | next [-]

[deleted]

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chrisco255 5 hours ago | parent | prev [-]

Perps aren't the same and they carry liquidation risks.