Tokenized Stock Models Clash
A recent dispute involving tokenized AMC Entertainment shares has evolved into a broader industry debate over which tokenized stock model will eventually prevail, according to The Defiant. The public disagreement began after comments from industry figures regarding the design and investor implications of various stock token products.
As reported by The Defiant, the market currently features three competing models for tokenized equities, which collectively hold $2.91 billion after growing 14.4% over thirty days across 2.67 million holders. These models differ significantly in legal structure and ownership rights. Robinhood utilizes debt securities issued by an offshore entity that provide economic exposure without any claim on the underlying company. Meanwhile, firms like Ondo, xStocks, and Dinari hold the actual shares through regulated intermediaries, with Dinari offering access to US investors. A third category, used by Securitize and Superstate, places a company’s registered shares directly onchain with the participation of the issuer and transfer agent.
The US Securities and Exchange Commission previously categorized these distinct designs in a January regulatory statement, determining that the underlying model dictates applicable securities laws and bankruptcy protections for token holders. Market data indicates that Ondo currently leads the sector with $869.6 million in value, followed by bStocks and xStocks, as builders continue to debate the long term viability of each framework.
Based on reporting by thedefiant.io.
