The risks that are specific to tokenized stocks

The risks that are specific to tokenized stocks

Buying a share carries market risk. Buying a token that tracks a share carries market risk *plus* a set of risks that come from the wrapper. This page lists the second set, because the first is the one everyone talks about.

1. Issuer risk

Your claim is against a company, not against a register. If the issuer fails and the assets are not bankruptcy-remote and segregated, the share price being right will not help you.

2. Custody risk

The shares sit with a custodian. Proof-of-reserves attestations reduce the uncertainty; they do not eliminate it, and they are a point-in-time statement.

3. Contract risk

A token is a smart contract. Bugs, proxy upgrades and admin keys are real attack surfaces. A ticker with three versions has three contracts, and they are not equally audited. Every ticker page here lists contract addresses per chain so you can check you are buying the one you think you are.

4. Chain and bridge risk

The same token exists on six chains. Moving it from one to another involves a bridge, and bridges have been the single largest source of losses in this industry. If you do not need to move it, do not move it.

5. Redemption risk

Redemption can require KYC, can be refused for compliance reasons, and depends on the issuer's operational process. A token you cannot redeem is only worth what the secondary market pays — and that market can be thin at exactly the wrong moment.

6. Jurisdiction risk

If you are a prohibited person under the issuer's terms, you have no rights under its offering documents. Holding the token does not change that. Read the list before you buy, not after.

Plus the boring ones

• Spread and mark-up — unpublished, unavoidable, and paid on both entry and exit.
• Market hours mismatch — the token trades when the underlying does not, so prices can gap without any news.
• Tax treatment — a token may not be treated as a share for tax purposes in your jurisdiction. Withholding on dividends happens at the issuer level before you see anything.
• Liquidity illusion — a market cap on an aggregator is not a bid. Thin tokens can show a large number and still be unsellable in size.

How this site handles it

Nothing here is a recommendation. The pages exist to make structure and cost legible: who the issuer is, what backs the token, which contract is on which chain, what the venue publishes about fees, and who is excluded. The rest is your decision, with your own advisor.