Buying Stocks with crypto is here!

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'For now, stock trading is available to US residents in eligible states.'



Cool I guess but still meh
 
Bruce flea said:






SOL will be used for Gas , It also allows foreigners to invest in the US stock market without the complicated set ups.

24/7 Stocks markets going to be a game changer!



https://www.cryptotimes.io/2025/05/22/sol-price-eyes-200-as-kraken-tokenizes-us-stocks-on-solana/

Click to expand...



Yeah I think this is direction market is going in. Even the big institutional investment players have started tokenizing bonds and funds on i.e Securitize's platform. Self custody and round the clock trading in a kyc verified (participants) closed network is way things are going in financial markets.



https://securitize.io/invest



P.S A lot of securities brokers are really gonna have to think about their business models going forward.
 
So does that mean you're investing in SOL, which then invests in those 50 stocks? You can’t choose which specific stocks to invest in or how much to allocate to each one?
 
The whole beauty of stocks (except speculation and wealth growth) is that in (un)likely case of your broker collapse your assets will still belong to you and the recovery process is usually quite fast - your new broker will be able to assign you your holdings from the depositary. So unless you are "trading" on some "kitchen" - you don't need to worry about the broker/bank insolvency.



Self-custody sounds good on paper but I don't quite understand what happens if you lose access to your wallet. Please, don't compare that to the whole "not your keys not your money" storing of crypto - they are two very different animals, stocks literally give you an partial ownership of a corporation, not some magic coins.
 
I have to admit, I’m also having a hard time fully understanding the product, so I’ll try to see how it works on Kraken over the coming week. It sounds new and exciting, but it might not be that smart in the end, still, I appreciate the tip shared in this thread.
 
manukahoney said:






Self-custody sounds good on paper but I don't quite understand what happens if you lose access to your wallet. Please, don't compare that to the whole "not your keys not your money" storing of crypto - they are two very different animals, stocks literally give you an partial ownership of a corporation, not some magic coins.

Click to expand...



I don't think you understood the implementation some providers have used such as securitize. They use a closed token network where all participants (addresses) are KYC'd. In order to send/receive it will only work with white listed addresses (KYC'd ones). They maintain internal register at all times of who owns what and what went to where. For example your tokens cannot be stolen and transferred away as the tokens stay within the network and every participant is known so who took your coins is obvious...lol and you cannot take it out of eco system....lol. Not sure how you can totally lose access when they know what tokens you have and if they still remain on your address and you lost key then recovery is not difficult by help of contract owner.



P.S I'm not sure how OP's mentioned SOL implementation wokrs it may be more risky and not a closed network.
 
Bruce flea said:






SOL will be used for Gas , It also allows foreigners to invest in the US stock market without the complicated set ups.

24/7 Stocks markets going to be a game changer!



https://www.cryptotimes.io/2025/05/22/sol-price-eyes-200-as-kraken-tokenizes-us-stocks-on-solana/

Click to expand...

And you will actually own the actual stock certificate like you would on Charles Schwab or InteractiveBrokers or it will be a synthetic "token", fake representation of real stock (mirror image) that is backed by nothing and if exchange goes broke, you can't transfer it via ACAT to other exchanges and it will be like FTX fiasco all over again?



This is a very important moment
 
Matade said:






you can't transfer it via ACAT to other exchanges and it will be like FTX fiasco all over again?

Click to expand...

That's bad, question is if kraken ever will go broke or if they are here to stay for ever.



I’ll admit, I hadn’t even considered the situation you’re describing, you never really know. We’ve seen even the biggest companies suddenly go belly up.
 
One quick question that comes to mind after reading this:



"As for these Tokenized assets, unlike traditional stock markets that close after regular hours, these tokenized stocks will be available for trading 24 hours a day, seven days a week. Kraken will use the Solana blockchain to make this happen so investors can buy and sell whenever they want."



and this:



"Kraken’s partner, Backed Finance, will hold the actual shares of the stocks backing the tokens. This means that for every token traded, there is a real stock behind it. The tokens can be exchanged for the cash value of these stocks at any time. This will keep the token prices closely matching the real stock prices."



How is it possible to actually piece the 2 sentences together? If I trade outside regular hours I will open a "tokenized" position, but I WILL NOT hold the stock, I won't have any real ownership as I will not get the transaction done in the actual market. What happens then if there is a gap up in price at the real market open the next day? Will the broker honor the claim and take the X% gap loss to fulfil its duty and allocate me the real shares? I understand they can/will run a book and that this can either go against as well as for them so they end up in a net zero operation, but it's definitely way too risky for now and I don't see the real use for it. Not until (maybe) the stock market trades round-the-clock, in which case they will be in a pole position to attract clients.



NVO
 
My old trust I had the portfolio manager was trading stocks outside of trading hours for decades using dark pools at the private bank it was houses at.









Nicholas Van Orton said:






One quick question that comes to mind after reading this:



"As for these Tokenized assets, unlike traditional stock markets that close after regular hours, these tokenized stocks will be available for trading 24 hours a day, seven days a week. Kraken will use the Solana blockchain to make this happen so investors can buy and sell whenever they want."



and this:



"Kraken’s partner, Backed Finance, will hold the actual shares of the stocks backing the tokens. This means that for every token traded, there is a real stock behind it. The tokens can be exchanged for the cash value of these stocks at any time. This will keep the token prices closely matching the real stock prices."



How is it possible to actually piece the 2 sentences together? If I trade outside regular hours I will open a "tokenized" position, but I WILL NOT hold the stock, I won't have any real ownership as I will not get the transaction done in the actual market. What happens then if there is a gap up in price at the real market open the next day? Will the broker honor the claim and take the X% gap loss to fulfil its duty and allocate me the real shares? I understand they can/will run a book and that this can either go against as well as for them so they end up in a net zero operation, but it's definitely way too risky for now and I don't see the real use for it. Not until (maybe) the stock market trades round-the-clock, in which case they will be in a pole position to attract clients.



NVO

Click to expand...



Ok what they are describing sounds like the concept of dark pools and them tokenizing the stocks in those dark pools. Bottom line is you don't need a listed exchange to buy and sell stocks if there is liquidity in the dark pool i.e a willing off exchange private buyer and seller. The buyer/seller accepts the Mark to Market price risk which can go for or against them. For example if I had Apple stock I can sell them to you in the form of Delivery Versus Payment (DVP) where my custodian receives the cash and you receive the stock I sold you and all done without a public stock exchange being used.



P.S This sort of tokenzied dark pool trading can be done 24/7 in theory but I need to see details of how they are actually handling it all in reality.
 
Martin Everson said:






I don't think you understood the implementation some providers have used such as securitize. They use a closed token network where all participants (addresses) are KYC'd. In order to send/receive it will only work with white listed addresses (KYC'd ones). They maintain internal register at all times of who owns what and what went to where. For example your tokens cannot be stolen and transferred away as the tokens stay within the network and every participant is known so who took your coins is obvious...lol and you cannot take it out of eco system....lol. Not sure how you can totally lose access when they know what tokens you have and if they still remain on your address and you lost key then recovery is not difficult by help of contract owner.

Click to expand...

So it's basically a "kitchen" then? You can't sell "shares" to anyone outside the pool, you are not the shareholder in the depositary, you just some number in the kitchen database. And all that for a chance to trade 24/7 365? Jees, the world is going crazy.
 
Lol...it would be an interesting world to have an open distributed Ledger so even Kim Jong Un of North Korea could pick up some US treasuries anonymously but unfortunately there is a thing called compliance and real life. Tokenizing real world assets needs a compliance framework down the line. But for now this is one way to kick start the RWA trend while working with existing rules.



P.S I can't see anonymous bearer shares making a comeback right now but it won't stop people trying in crypto world I guess...lol.
 
manukahoney said:






The whole beauty of stocks (except speculation and wealth growth) is that in (un)likely case of your broker collapse your assets will still belong to you and the recovery process is usually quite fast - your new broker will be able to assign you your holdings from the depositary. So unless you are "trading" on some "kitchen" - you don't need to worry about the broker/bank insolvency.



Self-custody sounds good on paper but I don't quite understand what happens if you lose access to your wallet. Please, don't compare that to the whole "not your keys not your money" storing of crypto - they are two very different animals, stocks literally give you an partial ownership of a corporation, not some magic coins.

Click to expand...

Please don't try to confuse the Crypto bros with facts.

Number go up so your argument is invalid /s
 
You need to go through the entire KYC and compliance process to be able to buy stocks this way! So it will be registered in your name and be almost the same as if you had the paper in your bank.
 
bubbledouble said:






You need to go through the entire KYC and compliance process to be able to buy stocks this way! So it will be registered in your name and be almost the same as if you had the paper in your bank.

Click to expand...



Exactly





People should realize that the money they hold in their bank account is all pooled into a single Nostro account. Then the bank maintains an internal ledger of how much of the pooled funds is allocated/belongs to each person. That ledger entry for each person is called your bank account where you see your balance. If the banks goes bust this internal ledger would be used to determine how much of cash in the Nostro belongs to each client. Anyone viewing the Nostro account has no idea how much belongs to each person without access to the banks internal ledger. The same principle applies to an Omnibus account that holds your stocks. Your stocks are all pooled together with other peoples stocks and the broker must keep an internal ledger of who owns what.



A digital block chain ledger is just a more transparent, verifiable and secure way of doing the same with more benefits.
 
happyjohn said:






That's bad, question is if kraken ever will go broke or if they are here to stay for ever.



I’ll admit, I hadn’t even considered the situation you’re describing, you never really know. We’ve seen even the biggest companies suddenly go belly up.

Click to expand...

It just has to happen once in 1000 and you're totally screwed. SIPC doesn't protect Kraken's synthetic tokens like they do invetments at Schwab or IBKR, because the latter actually hold real stocks for you not FTX crypto tokens.
 
Martin Everson said:






Exactly





People should realize that the money they hold in their bank account is all pooled into a single Nostro account. Then the bank maintains an internal ledger of how much of the pooled funds is allocated/belongs to each person. That ledger entry for each person is called your bank account where you see your balance. If the banks goes bust this internal ledger would be used to determine how much of cash in the Nostro belongs to each client. Anyone viewing the Nostro account has no idea how much belongs to each person without access to the banks internal ledger. The same principle applies to an Omnibus account that holds your stocks. Your stocks are all pooled together with other peoples stocks and the broker must keep an internal ledger of who owns what.



A digital block chain ledger is just a more transparent, verifiable and secure way of doing the same with more benefits.

Click to expand...

Can you tell me all the ways it can go wrong?



I can see some:



1) Hack / crack, institution going bust.

2) No SIPC coverage.

3) Can't transfer them out of the institution, since they are not real shares.

4) You don't actually have voters rights.
 
Matade said:






Can you tell me all the ways it can go wrong?

Click to expand...



We can start with technical outage all the way up to confiscation and nuclear war....lol. Bro what a question to ask.



I couldn't tell you all the ways a non-tokenized broker operation can go wrong. Can you?



You should have asked me an easier question like guess the bitcoin private key for a public wallet address you give me.
 
A few years ago, there was a nice protocol called Mirror which allowed buying synthetic stocks. They had a system to incentize keepers to maintain the prices of the synthetic assets relatively closely to the anchored stocks, and it worked. Was a gem. Unfortunately, it was on Terra network, which blew up and took down Mirror and every other protocol on there.
 
Shoresy said:






A few years ago, there was a nice protocol called Mirror which allowed buying synthetic stocks. They had a system to incentize keepers to maintain the prices of the synthetic assets relatively closely to the anchored stocks, and it worked. Was a gem. Unfortunately, it was on Terra network, which blew up and took down Mirror and every other protocol on there.

Click to expand...

Yes, I remember they also offering options or futures on stocks. FTX offered stock/derivatives as well. They are both gone.



No one mentions bybit here?

undefinedBybit users can now trade 78 global stocks directly with USDT as part of its Gold & FX expansion​#-bybit-users-can-now-trade-78-global-stocks-directly-with-usdt-as-part-of-its-gold-fx-expansionSource Cryptopolitan

May 20, 2025 00:51

Bybit has launched direct trading of top global stocks with USDT as part of its Gold & FX (MT5) expansion. The new feature covers 78 key stocks from the technology, automotive, energy, and e-commerce industries.



Bybit said, “Users can now tap into traditional markets like stocks, gold, oil, indices, and forex, without fiat onboarding or leaving the crypto ecosystem.”



The crypto exchange added that the launch allows it to “unify crypto, stocks, and traditional assets under one roof” and enables “seamless trading” across asset classes from a single account.



Major stocks include Apple ($AAPL), Tesla ($TSLA), Meta ($META), Nvidia ($NVDA), Amazon ($AMZN), and Microsoft.



Bybit users will be discounted

Stock trading on Bybit will be facilitated through Contracts for Difference (CFDs) instead of Spot trading or the purchase of physical shares. This will allow users to gain exposure to price movements without owning the underlying asset.



A fee of 0.04 USDT per share applies. It has a minimum charge of 5 USDT per order. From June 2 to June 15, all Bybit users will get a 50% discount on fees for trading stocks through Gold & Forex.



https://www.mitrade.com/insights/news/live-news/article-3-829410-20250520
 
Martin Everson said:






We can start with technical outage all the way up to confiscation and nuclear war....lol. Bro what a question to ask.



I couldn't tell you all the ways a non-tokenized broker operation can go wrong. Can you?



You should have asked me an easier question like guess the bitcoin private key for a public wallet address you give me.

Click to expand...

Kudos to you for not asking GPT o3-Pro to write out a realistic reply to my question, then posting it here as your own for internet brownie points.
 
Why not? It would’ve been just as valid a question as yours.

Anything can happen, a company that looks rock solid on paper today could go bankrupt tomorrow if things turn out to be different from what they seemed.
 
happyjohn said:






Why not? It would’ve been just as valid a question as yours.

Anything can happen, a company that looks rock solid on paper today could go bankrupt tomorrow if things turn out to be different from what they seemed.

Click to expand...

Everson's alt???
 
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