This article provides a deep analysis of US stock trading products offered by crypto exchanges (CEX), revealing they are not real equity ownership but differentiated exposures via three paths: traditional API, tokenization, and perpetual contracts. It focuses on the five-layer architecture under tokenization that causes voting rights evaporation, dividend contractualization, and SIPC protection failure, and exposes the liquidity discontinuity and risk transfer issues arising from Alpaca's 94% liquidation custody monopoly.
The Illusion of US Stocks on CEX
The article reveals that US stock trading products on crypto exchanges (CEX) are not actual equity ownership but differentiated exposures achieved through three paths: traditional API, tokenized assets, and perpetual contracts. The tokenized model involves a complex five-layer structure that undermines investor voting rights, turns dividends into contractual arrangements, and lacks SIPC protection.
Alpaca's 94% Liquidation Monopoly: Liquidity Gaps and Risk Transfer
More critically, Alpaca dominates approximately 94% of the liquidation custody market. This extreme concentration creates liquidity gaps during market stress, allowing exchanges to transfer liquidation risk to users, resulting in equity evaporation. Investors must recognize the real risks behind these products.
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