1. The Ownership Spectrum
Published 8/4/2026, 9:13:39 AM
Tokenized equities currently exist on a spectrum between direct legal ownership and on-chain IOUs. As of August 2026, the vast majority of the $32.1 billion tokenized Real-World Asset (RWA) market operates via custodial "IOU" models, where tokens represent a beneficial interest in assets held by a third party rather than direct title on a company's cap table.
1. The Ownership Spectrum
The legal status of a tokenized equity is determined by its proximity to the underlying security. Most retail-accessible tokens are "Type B" or "Type C" structures.
| Model Type | Legal Structure | Ownership Status | Rights (Voting/Dividends) |
|---|---|---|---|
| Type A: Native Issuance | Blockchain is the official master securityholder file. | Direct Legal Title | Full shareholder rights; direct claim on issuer. |
| Type B: Custodial (IOU) | Token is a "security entitlement" backed by shares in a brokerage. | Beneficial Ownership | Economic exposure; voting via proxy or "preference expression." |
| Type C: SPV Wrapper | Token represents shares in a fund/LLC that owns the stock. | Indirect Interest | Claim on the SPV, not the underlying company. |
| Type D: Synthetic | Derivative contract tracking price; no underlying asset. | Contractual Claim | None; purely price exposure. |
2. Major Platform Approaches
Different platforms utilize distinct legal frameworks to bridge traditional equities to the blockchain.
- Ondo Finance: The market leader, controlling approximately 70% of tokenized stock volume. Its tokens are issued via Ondo Global Markets (BVI). While it integrated with Broadridge in April 2026 to allow token holders to express voting preferences, its documentation explicitly states that tokens do not confer direct shareholder rights [Source: https://www.broadridge.com/press-release/2026/broadridge-and-ondo-bring-shareholder-voting-capabilities-to-tokenized-securities].
- Dinari (dShares): Operates as a U.S.-registered, FINRA-member broker-dealer. It issues tokens 1:1 backed by real-world equities held in custodial accounts, providing a more regulated bridge for beneficial ownership [Source: https://dinari.com/dshares].
- Backed Finance: Issues "tracker certificates" under the Swiss DLT Act. These are 1:1 backed "wrappers" (e.g., bCSPX for S&P 500) where the token is the ledger representation of the certificate [Source: https://assets.backed.fi/structure].
- BlackRock (BUIDL via Securitize): Uses a "Type C" model where the token represents a share in a specific fund, which then holds the underlying assets (primarily Treasuries and Repos). Investors own the fund, not the collateral.
3. Key Risks and Legal Realities
The "IOU" nature of these assets introduces counterparty risks that differ from traditional brokerage accounts:
- Bankruptcy Remoteness: While many platforms use Special Purpose Vehicles (SPVs) designed to be bankruptcy-remote, these structures are less legally tested in court than traditional SIPC-protected brokerage accounts. In a liquidation event, token holders may be treated as unsecured creditors of the issuer.
- Redemption Barriers: Unlike traditional stocks, tokenized equities often have minimum redemption amounts and specific notice periods, limiting liquidity compared to the underlying shares.
- Verification: To mitigate "IOU" risk, most platforms now employ Proof of Reserves (PoR) or daily independent audits to verify 1:1 backing.
4. Conclusion
If you hold a tokenized equity today, you likely hold an on-chain IOU that grants you the economic benefits (dividends and price action) of the stock without the legal standing of a registered shareholder. True "Real Ownership" (Type A), where the blockchain serves as the official registry for a public company like Apple or Tesla, remains a theoretical or niche application that has not yet achieved mainstream regulatory adoption.