Three Paths: Differentiated Equity Exposure
The so-called 'US stock' trading products on crypto exchanges (CEX) do not grant users actual ownership of US equities. Three main paths exist: traditional API integration, tokenized assets, and perpetual contracts. Each corresponds to different rights structures and risk exposures—investors effectively acquire multi-layered derivative contracts or certificates, not stock ownership.
Five-Layer Architecture: Rights Evaporation
Under the tokenized model, at least five intermediaries sit between the underlying stock and the user's account: custodian bank, issuer, clearing broker, exchange, and user wallet. Each layer dilutes or contractualizes original shareholder rights: voting rights are completely stripped, dividends become contractual promises from the issuer, and investor protections (e.g., SIPC) are void. This structure creates a significant legal and operational gap between users and the underlying assets.
94% Clearing Monopoly: Liquidity Gap and Risk Shifting
Data shows that Alpaca alone controls approximately 94% of the clearing and custody market share for this sector. This high concentration means that if Alpaca faces technical failures, liquidity crises, or compliance issues, the entire ecosystem of tokenized US stock trading will suffer systemic liquidity gaps. Risks cannot be diversified and may ultimately be passed down to end users through multiple layers.