How to Buy Tokenized Stocks and ETFs On-Chain
Learn how to buy tokenized stocks and ETFs like NVDA, AAPL, and SPY on-chain. Our guide covers the benefits, including 1:1 backing, DeFi composability, and fractional ownership.
How to Buy Tokenized Stocks and ETFs On-Chain
Tokenized stocks are digital, on-chain representations of shares in publicly traded companies. When you acquire a token for a company like NVIDIA (NVDA) or an ETF like the SPDR S&P 500 ETF (SPY) on our platform, you are buying an asset that corresponds directly to one real share. These are not synthetic derivatives. Each token is fully backed 1-to-1 by an actual share, which we hold in a segregated account at a regulated broker-dealer. This model gives you the direct economic exposure of traditional stock ownership, including price movements and dividend value, with the technical advantages of a standard on-chain token.
This structure fundamentally changes how you can interact with your assets. Unlike holding stocks in a traditional brokerage account, which often involves slow T+2 settlement times and limited accessibility, tokenized stocks settle nearly instantly on the blockchain. They are standard ERC-20 tokens that live in your self-custodial wallet, giving you direct control and the ability to integrate them into the broader decentralized finance (DeFi) ecosystem. We built GM Markets to provide this direct, efficient, and secure bridge to global equity markets.
Available Tokenized Assets on GM Markets
Our platform provides access to a curated selection of leading US stocks and exchange-traded funds (ETFs), allowing you to build a diversified portfolio that aligns with your strategy. You can gain exposure to technology leaders and the market as a whole. The assets available for trading include:
- Leading Technology Stocks: Gain exposure to some of the world's most influential technology companies, including NVIDIA (NVDA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), and Tesla (TSLA).
- Broad Market ETFs: Invest in the wider US stock market through a single, liquid on-chain asset. We offer tokens for the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ), and the Vanguard S&P 500 ETF (VOO).
This selection allows you to either target specific high-growth companies or track the performance of major US indices like the S&P 500 and the Nasdaq-100.
Why Invest in Tokenized US Equities On-Chain?
Moving your equity investments onto the blockchain unlocks distinct advantages over conventional financial systems. The US equity market is the largest in the world, with benchmark funds like the SPDR S&P 500 ETF (SPY) representing over $500 billion in assets under management, according to its issuer State Street Global Advisors. Tokenization makes accessing this market more efficient and versatile.
- Global Accessibility: Traditional brokerages often impose geographic or banking restrictions, making it difficult for international investors to access US-listed companies. Our platform is permissionless. Anyone outside of restricted jurisdictions can onboard with a crypto wallet or email and gain exposure.
- Fractional Ownership: Top tech stocks can have high per-share prices. Tokenization allows for fractional ownership down to six decimal places. You can invest with as little as $1, making it possible to build a diversified portfolio without significant capital.
- DeFi Composability: Your tokenized stocks and ETFs are not idle assets. As standard ERC-20 tokens, they can be used as collateral to borrow other assets, lent out to earn a yield, or provided as liquidity to decentralized exchanges, all while you maintain price exposure.
- Self-Custody and Control: With tokenized assets, you hold them in your own wallet. As we detail on our Security page, this model uses multi-party computation (MPC) to reduce the counterparty risk associated with a single financial institution controlling your entire portfolio.
A Step-by-Step Guide to Acquiring Tokenized Stocks
Acquiring on-chain exposure to the US stock market on GM Markets is a straightforward process. Here is how you can get started in five steps:
- Onboard to the Platform: You can create an account and a secure, self-custodial wallet in seconds. Connect an existing crypto wallet or sign up using a Google account or email address. Our embedded wallets use MPC for enhanced security.
- Fund Your Account: Deposit funds to begin trading. We support deposits via stablecoins like USDC and USDT across multiple chains, including Base and Arbitrum. You can also use traditional payment methods, including credit cards, Apple Pay, or bank transfers.
- Find an Asset: Navigate to the markets section on our platform. You can search for specific tickers of major technology companies, such as NVDA or AAPL, or find ETFs like SPY that provide broader market exposure.
- Execute Your Trade: We use a Request-for-Quote (RFQ) system for trade execution. This means you receive a firm price from our market-making partners before you confirm your trade. The price you see is the price you get, with our fee already included.
- Verify Your On-Chain Assets: After the trade is complete, the tokenized stocks are delivered directly to your wallet on your chosen blockchain. You can verify the transaction and your ownership on a public block explorer at any time.
Putting Your Tokenized Assets to Work in DeFi
The primary advantage of holding US equities on-chain is composability: the ability to use them as productive assets within the DeFi ecosystem. Instead of sitting idle in a brokerage account, your tokenized NVDA or SPY can be deployed in various protocols. Here are a few specific examples:
- Collateral for Borrowing: You can supply your tokenized stocks to a lending protocol like Aave or Morpho. By depositing your assets as collateral, you can borrow stablecoins or other crypto assets against them. This allows you to unlock liquidity from your portfolio without selling your position.
- Liquidity Provision: You can contribute your tokenized assets to a liquidity pool on a decentralized exchange (DEX) like Uniswap or Curve. For example, you could pair tokenized SPY with a stablecoin like USDC in a liquidity pool. In return, you earn a share of the trading fees generated by that pool.
- Enhanced Trading Strategies: Tokenized stocks can be used as margin or collateral on decentralized perpetuals protocols. This allows for more sophisticated trading strategies that are not typically available to retail investors in traditional finance.
How We Ensure 1:1 Backing and Transparency
Trust is built on verifiable proof. We designed our system to be fully transparent and secure, ensuring every tokenized asset is always backed by its real-world equivalent.
The underlying shares for our tokenized stocks are held in segregated customer accounts at regulated, established broker-dealers, including Interactive Brokers and Alpaca Markets. These shares are held separately from our own corporate assets. To provide continuous verification, we work with third-party attestation services like Accountable. They access our broker accounts in real time and publish the holdings on-chain. This allows anyone to independently verify that the total supply of a tokenized stock matches the number of shares we hold in custody. You can view this data live on our Proof of Reserves page.
Furthermore, our legal structure utilizes a bankruptcy-remote Special Purpose Vehicle (SPV) to issue the tokens. This means the assets held in custody are ring-fenced and protected for token holders, even in the unlikely event that GM Markets ceases operations.
Understanding Costs, Dividends, and Risks
We believe in a simple and transparent fee structure. Our only revenue comes from a single trading fee, which ranges from 10 to 20 basis points (0.10% to 0.20%) depending on your trading volume. There are no deposit fees, withdrawal fees, or custody fees.
Dividends are handled through a total-return model. When a company like Apple, with a recent dividend yield around 0.5%, issues a dividend, the cash is automatically used to purchase more of the underlying stock. This increases the net asset value (NAV) of your tokenized position. Your holdings grow in value instead of you receiving a small cash payout, which can be a more efficient way to compound returns.
It is important to understand the risks involved. All investments carry market risk, meaning the value of your assets can go down as well as up. Tokenized assets also carry technical risks, such as smart contract vulnerabilities and counterparty risk with the underlying custodians. We provide our services globally, but our platform is not available to users in the United States or other restricted jurisdictions. For a complete overview, please review our risk and legal disclosures.
Frequently Asked Questions
What happens to my tokenized stocks if GM Markets ceases operations?
A designated security agent would work directly with the custodian to redeem all outstanding tokens for the underlying shares or their cash equivalent. This process is enforced by the on-chain contracts and legal structure, ensuring your assets remain protected independently of our company's operations.
Do I receive shareholder voting rights with my tokenized AAPL shares?
No. Our tokenized stocks provide you with the direct economic exposure to the asset, including price changes and dividend value. They do not, however, confer the voting rights that come with direct share ownership.
How are corporate actions like stock splits handled?
All corporate actions, such as stock splits, mergers, or spin-offs, are automatically reflected in the token's on-chain net asset value. Our system adjusts to ensure your tokenized position continues to accurately track the economic value of the underlying asset.
Can I withdraw my tokenized stocks to an external wallet like MetaMask?
Yes. The tokens are standard ERC-20 assets. You can withdraw them from your GM Markets embedded wallet to any compatible external wallet on the same blockchain, giving you full control to use them across the DeFi ecosystem.
The Future of Investing is On-Chain
Tokenization provides a modern, efficient, and secure bridge between traditional financial markets and decentralized finance. For US equities, this means investors everywhere can gain exposure to key global companies with less friction and greater flexibility than ever before.
By combining 1:1 backing, real-time transparency, and the composability of on-chain assets, we offer a powerful new way to build and manage your portfolio. You can gain exposure to the performance of major US stocks and ETFs while putting those assets to work in DeFi. We invite you to explore the available tokenized assets on the GM Markets platform today.
