How to Buy Tokenized Stocks on-Chain with GM Markets: A Guide
Learn how to buy tokenized US stocks on GM Markets, a permissionless, self-custodial platform. Understand 1:1 backing, fees, and DeFi composability. Not offered to US persons.
How to Buy Tokenized Stocks on-Chain with GM Markets: A Guide
The semiconductor industry, particularly companies at the forefront of memory and storage solutions, continues to capture significant investor interest. This sector is undergoing a transformative period, largely driven by the escalating demand for high-performance chips crucial for artificial intelligence (AI) and generative AI applications. For instance, Deloitte projects that generative AI chips alone will approach US$500 billion in revenue in 2026, representing roughly half of global chip sales. The global AI in semiconductor market is also expected to grow from USD 65.01 billion in 2025 to approximately USD 250.63 billion by 2035, according to Grand View Research. This growth has naturally led many to explore new ways to gain exposure to such critical assets, including through tokenized stocks.
While GM Markets provides access to a growing catalog of tokenized US stocks and ETFs, we want to be transparent that Micron Technology (MU) is not currently available for trading on our platform. However, understanding how tokenized stocks function and how platforms like ours operate is valuable for any investor interested in this asset class. This guide will outline the general process for acquiring tokenized US stocks on GM Markets, using Micron (MU) as a conceptual example to illustrate the benefits and mechanics of on-chain equity exposure.
Our platform is designed to integrate traditional equity markets with blockchain finance, offering a permissionless path to acquire tokenized US-listed stocks and ETFs. We provide the security of 1:1 backing, self-custody through advanced embedded wallets, and enhanced composability within decentralized finance. This means you can gain economic exposure to leading companies with the flexibility and transparency of the blockchain, all outside the United States and other restricted jurisdictions.
What Are Tokenized Stocks?
A tokenized stock is a digital asset that represents the economic value of an underlying share of a publicly traded company. It is essentially an on-chain proxy that tracks the price movements, dividends, and corporate actions of a traditional stock. For example, a tokenized share of Micron (MU), if available, would reflect the market performance of Micron Technology, Inc.
The core principle behind tokenized stocks on our platform is 1:1 backing. This means every tokenized asset you hold is fully backed by one real share held in a segregated customer account at a regulated broker-dealer. This mechanism ensures that the value of your tokenized position directly corresponds to the value of the underlying traditional share.
When you hold a tokenized stock, you gain economic exposure, meaning you benefit from price appreciation and receive dividends. On our platform, dividends are automatically reinvested into the underlying asset, which increases the token's on-chain Net Asset Value (NAV) rather than being paid out separately. This total-return model simplifies dividend management and can offer tax efficiencies depending on your jurisdiction. It is important to note that while tokenized stocks provide economic exposure, they do not confer shareholder voting rights, which remain with the custodian holding the underlying shares.
Why Choose GM Markets for Tokenized Stocks?
GM Markets is built to simplify access to global equities for a diverse, global audience. Our platform offers several distinct advantages for trading tokenized US stocks:
Permissionless Access
We offer a wallet-native onboarding process that bypasses many traditional hurdles. You can connect an existing external wallet or create an embedded wallet using your Google account or email magic-link. This permissionless approach allows for quick and direct access to the markets we support.
Self-Custody
Your tokenized assets are held in your embedded wallet, which is managed by Privy using multi-party computation (MPC) technology. This means no single party, including GM Markets, holds the full private key to your wallet. Instead, the key is split and reconstructed on your device only when you sign a transaction, providing enhanced security and control over your assets. You retain full custody of your tokenized holdings.
Global Accessibility
GM Markets is designed for users worldwide. We do not serve users in the United States or other restricted jurisdictions. Our platform opens up access to US-listed equities for a global investor base that might otherwise face significant barriers.
Transparent Fees
We believe in straightforward pricing. Our revenue model consists solely of a single trading fee, which ranges from 10 to 20 basis points (0.10% to 0.20%). The default fee is 20 bps, which decreases to 10 bps as your 14-day trading volume grows through our VIP ladder. There are no hidden costs for custody, inactivity, or FX markups. Deposits and withdrawals are free across all supported rails, including stablecoins, Apple Pay, card, and bank transfers. You can review our full pricing structure for details.
Gas Abstraction
Navigating gas fees on various blockchains can be complex. We abstract gas fees completely. Your smart account pays native chain gas, and the equivalent amount is billed in USDF from your balance. This means you never need to hold native chain tokens (like ETH or MATIC) to cover transaction costs, simplifying the trading experience.
Real-time Attestation
Transparency and trust are paramount. Our 1:1 backing is independently attested on-chain in real time by Accountable, a third-party proof-of-reserves provider. This allows you to verify the backing of every tokenized asset through our Proof of Reserves page, ensuring that your tokenized holdings are fully collateralized.
Step-by-Step: Buying Tokenized Stocks on GM Markets (Using Micron (MU) as an Example)
While Micron (MU) is not currently available on our platform, the process for acquiring any tokenized US stock on GM Markets is simple and direct. Here is how you would typically proceed:
Step 1: Connect Your Wallet or Sign Up
Begin by visiting gm.markets. You can connect an existing external wallet (such as MetaMask or WalletConnect compatible wallets) or create a new embedded wallet. For embedded wallets, simply sign up using your Google account or an email magic-link. Our system will guide you through the quick setup process, securing your wallet with biometric authentication or a passkey.
Step 2: Deposit Funds
Once your wallet is set up, you will need to deposit funds. We support stablecoins like USDC and USDT, which are unified into USDF on our platform. You can also use traditional fiat rails such as Apple Pay, card payments, or bank transfers, all without deposit fees. Navigate to the 'Deposit' section, choose your preferred method, and follow the instructions to fund your account.
Step 3: Navigate to Your Desired Asset
After your deposit is confirmed, use the search bar or browse the available markets to find the tokenized stock you wish to trade. If Micron (MU) were available, you would search for its ticker symbol, MU, and select it to view its market page. Here, you would see real-time pricing and trading information.
Step 4: Place Your Trade
On the asset's trading page, enter the desired quantity of tokens you want to buy or the specific value in USDF you wish to spend. Our platform uses a Request-For-Quote (RFQ) system, where regulated market-making partners provide real-time quotes against the live underlying market. Review the quoted price, which includes our transparent trading fee, and confirm your order.
Step 5: Confirm Transaction
To finalize your trade, you will be prompted to confirm the transaction. This is secured through your embedded wallet using biometric authentication (Face ID or Touch ID) or your passkey. For trades and withdrawals above $10,000, a second factor confirmation is triggered for added security. Once confirmed, your tokenized shares will appear in your portfolio.
Security, Backing, and Fees: The GM Markets Difference
Our commitment to security, transparency, and user control defines the GM Markets experience:
1:1 Backing and Custody
Every tokenized asset on our platform is backed 1:1 by a real share of the underlying stock or ETF. These shares are held in segregated customer accounts at regulated US broker-dealers, specifically Interactive Brokers and Alpaca Markets. These segregated accounts ensure that your assets are held separately from the broker's own funds and are protected under applicable investor-protection arrangements, independent of GM Markets' balance sheet. You can learn more about our security measures.
Proof of Reserves
Our independent, real-time on-chain attestation by Accountable provides verifiable proof of reserves. This system continuously monitors the underlying share balances held at our broker partners and compares them against the total token supply on-chain. This ensures that the 1:1 backing ratio is maintained and can be publicly audited at any time on our Proof of Reserves page.
Wallet Security
The embedded wallets on GM Markets leverage multi-party computation (MPC) technology provided by Privy. This advanced cryptographic technique splits your private key into multiple shares, distributed across different parties. This setup significantly reduces the risk of a single point of failure, enhancing the security of your digital assets and ensuring that only you, through your authenticated device, can authorize transactions.
Fee Structure Explained
As mentioned, our fee model is simple and transparent: a trading fee of 10 to 20 basis points (0.10% to 0.20%). Deposits and withdrawals are always free. We do not charge custody fees, inactivity fees, or any FX markups. The fee is always included in the quoted price you see before confirming a trade, making the 'You will receive' line final. Our VIP tiers offer reduced fees for higher trading volumes, rewarding active users.
Total Return Model for Dividends and Corporate Actions
We employ a total-return model for dividends and corporate actions. When a dividend is issued for an underlying share, it is automatically reinvested to purchase more shares, which in turn increases the token's on-chain NAV. This means you experience the value of the dividend through the appreciation of your tokenized asset's value, rather than receiving a separate cash payout. Similarly, other corporate actions like stock splits, spin-offs, mergers, or name changes are absorbed into the token's NAV, ensuring your economic exposure precisely tracks the underlying asset. This approach simplifies portfolio management and can offer tax advantages, though you should always consult a tax advisor regarding your specific obligations.
Unlocking DeFi with Tokenized Stocks
The true power of tokenized stocks on GM Markets lies in their composability within the broader decentralized finance (DeFi) ecosystem.
Composability
Our tokenized assets are standard ERC-20 tokens, making them highly versatile. This means you can integrate your tokenized holdings into various DeFi protocols. For example, you could lend your tokenized assets on decentralized lending protocols like Aave, which allows users to supply digital assets to earn interest and borrow against collateral. Similarly, Morpho optimizes lending and borrowing efficiency on Ethereum. You could also supply them as liquidity to decentralized exchanges like Uniswap, a leading automated market maker for token swaps, or Curve Finance, which specializes in efficient stablecoin and pegged-asset exchanges. Furthermore, CoW Swap, an interface built on CoW Protocol, leverages batch auctions for optimal trade execution, offering another avenue for utilizing these assets. This transforms your traditional equity exposure into productive capital within your crypto-native portfolio.
Fractional Ownership
GM Markets allows you to trade tokenized US stocks from as little as $1, with precision up to six decimal places. This fractional ownership capability democratizes access to high-value stocks, enabling investors with smaller capital to diversify their portfolios across a wider range of assets, including those with high per-share prices.
Portfolio Diversification
Tokenized equities enable seamless portfolio diversification by blending traditional market exposure with crypto-native assets. This allows you to hedge against volatility in one market with assets from another, or to simply expand your investment horizons beyond purely crypto-based holdings. This integration offers a powerful way to manage risk and pursue new opportunities within a unified, self-custodial framework.
Frequently Asked Questions about Tokenized Stocks
Is tokenized stock identical to owning shares directly?
No, tokenized stock provides economic exposure to the underlying share, tracking its price movements and dividends (via NAV adjustments). It does not confer direct shareholder voting rights, which remain with the custodian holding the physical shares.
How are dividends and corporate actions handled for tokenized stocks?
On GM Markets, a total-return model is used. Dividends are reinvested into the underlying shares, increasing the token's on-chain Net Asset Value (NAV). Corporate actions like splits or mergers are also absorbed into the NAV, ensuring your economic exposure tracks the underlying without separate cash payouts.
What are the primary risks associated with trading tokenized stocks on-chain?
Trading tokenized stocks carries market risk, meaning the value of your investment can fluctuate and you may lose money. Additionally, these assets carry specific risks such as settlement risk, counterparty risk (of the custodian), and smart-contract risk. We provide no financial, investment, tax, or legal advice, and you should always conduct your own research and consult professionals.
Can I transfer my tokenized assets to any external ERC-20 compatible wallet?
Yes, our tokenized assets are standard ERC-20 tokens. You can transfer them to any compatible external wallet you control, enabling full self-custody and integration with the broader DeFi ecosystem.
Is GM Markets accessible to users in the United States or other restricted regions?
No, GM Markets is not offered to users in the United States or other restricted jurisdictions. Our platform is designed to serve a global audience outside these regions, providing access to tokenized US-listed stocks and ETFs.
Conclusion: Trading Tokenized Equities on GM Markets
While Micron (MU) is not currently available on GM Markets, understanding the mechanics of how to buy tokenized stocks on our platform is a crucial step for any investor seeking on-chain exposure to traditional equities. We simplify the process, offering a secure, self-custodial, and permissionless way to access US-listed stocks and ETFs from anywhere in the world (outside restricted jurisdictions).
Our commitment to 1:1 backing, transparent fees, gas abstraction, and real-time proof of reserves ensures a robust and trustworthy trading environment. The composability of our ERC-20 tokenized assets makes new possibilities within DeFi accessible, allowing you to diversify your portfolio and leverage your holdings in innovative ways. We invite you to explore the range of tokenized US-listed assets currently available on GM Markets and discover the advantages of on-chain equity trading. Please remember that markets can move against you, and you may lose money. We do not provide financial advice, and our services are not offered to users in the United States or other restricted jurisdictions. For more information, please visit our legal and risk disclosure page.
