This article reveals that the so-called 'US stock trading' products offered by centralized crypto exchanges (CEX) are not real stock ownership. Instead, they provide differentiated exposure through traditional API, tokenization, and perpetual contracts. The analysis highlights how the five-layer structure of tokenized stocks results in loss of voting rights, contractual dividend treatment, and absence of SIPC protection. Additionally, Alpaca's monopoly of 94% clearing and custody services creates liquidity gaps and risk transfer to end users.
Centralized crypto exchanges (CEXs) that offer 'US stock trading' are not providing direct ownership of real equities. Instead, they employ three pathways to deliver price exposure: traditional brokerage API integration, tokenized assets, and perpetual swap contracts. The tokenized model involves a five-layer architecture, each layer of which can strip voting rights, convert dividends to contractual payments, and void SIPC insurance coverage.
Furthermore, the clearing and custody stage is dominated by a single entity—Alpaca holds a 94% market monopoly. This concentration creates liquidity discontinuity; any disruption at Alpaca would directly transfer risk onto end users, leaving investors with no genuine equity protection. Source: MarsBit
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