Native On-Chain Equity: Full Shareholder Rights on the Blockchain
This model maps all traditional share rights (including voting and dividend rights) onto the blockchain. Tokens represent the equity itself, allowing holders to exercise shareholder rights directly. It suits institutional investors for long-term value investing but faces high compliance costs and limited liquidity.
SPV-Backed 1:1 Spot Token: Composable but No Direct Ownership
A special purpose vehicle (SPV) holds the underlying stock and issues 1:1 pegged tokens. Tokens can be freely traded and composed into DeFi protocols, but holders do not own the company's equity directly—they hold a claim on the SPV. This balance of compliance and composability appeals to DeFi users.
Perpetual Contracts Without Underlying Support: Pure Price Speculation
These contracts are not backed by any real shares. They simulate stock price movements via smart contracts, with traders essentially betting on price direction. No ownership, dividends, or governance rights exist—purely speculative tools for short-term traders.
Token as an Independent Asset
The core insight across all three models is that tokens themselves are independent assets, capable of circulating, pricing, and trading without relying on traditional share legal frameworks. Investors should choose the appropriate form based on their needs.