Three Paths to Tokenized US Stocks: Missing Real Ownership
Crypto exchanges (CEX) touting "US stock trading" do not offer genuine ownership of the underlying equities. The article identifies three distinct approaches: traditional API brokerage integration, tokenized stocks, and perpetual contracts. Among them, the tokenized model is the most complex, involving a five-layer structure consisting of issuer, custodian, clearing house, exchange, and end-user. Each layer dilutes or transfers the rights attached to the underlying security.
Five-Layer Rights Evaporation: Voting, Dividends, and SIPC Protection
In the tokenized structure, users do not hold shares registered in their own name on the shareholder register. Instead, they hold proportional claims that are typically non-voting (the issuer or custodian exercises voting rights without user direction). Dividend distributions become contractual promises, not guaranteed by the corporate issuer. Critically, Securities Investor Protection Corporation (SIPC) coverage applies only to cash and securities held at a registered broker-dealer. Under the tokenized model, user assets are not held at the broker level, rendering SIPC protection void. If the custodian or issuer becomes insolvent, users have little recourse to recover their claims.
Alpaca's 94% Clearing Monopoly: Liquidity Gaps and Risk Transfer
The article further reveals that Alpaca Securities dominates the clearing and custody of CEX tokenized US stock products, holding approximately 94% market share. This means the vast majority of CEX-listed tokenized stocks rely on a single clearing entity. Should Alpaca suffer a technical outage, liquidity crisis, or regulatory action, the entire tokenized stock ecosystem could face a clearing halt, preventing users from withdrawing funds or closing positions. Moreover, CEX typically pass clearing default risk to users via terms of service, creating an asymmetric risk structure where users bear the downside without the protections of real equity ownership.