How to Sell Tokenized Stocks and Withdraw Funds on GM Markets
Learn the step-by-step process for selling tokenized stocks on GM Markets and withdrawing your funds. This guide covers on-chain mechanics, fees, and withdrawal options.
How to Sell Tokenized Stocks and Withdraw Funds on GM Markets
Selling your tokenized stocks and accessing the funds is a secure and direct process on our platform. We designed the experience to combine the simplicity of a traditional brokerage with the speed and flexibility of on-chain finance. When you decide to sell a tokenized asset, you instantly convert your position into USDF, our platform's stablecoin balance backed 1:1 by USDC and USDT. From there, you can withdraw your funds on-chain to an external crypto wallet or off-ramp to a traditional bank account.
The entire process is built for transparency and security. As the platform operator, we provide a clear guide to selling your assets and explain the underlying mechanics. This ensures you understand exactly how your on-chain positions are converted into liquid funds that are fully in your control.
Step-by-Step: How to Sell Your Tokenized Assets
Selling an asset on GM Markets is a straightforward process that takes just a few clicks. The proceeds are credited to your USDF balance instantly upon confirmation, giving you immediate access to your capital.
- Navigate to your Portfolio. From the main dashboard, select the Portfolio tab to see a complete list of your current holdings.
- Select the asset you wish to sell. Click on the tokenized stock or ETF you want to liquidate. This will open the trading interface for that specific asset.
- Enter the amount and review the quote. You can specify the amount you wish to sell either in the number of tokens or by its equivalent dollar value. Our platform uses a Request-For-Quote (RFQ) system to provide a real-time price.
- Confirm the sale. After reviewing the quote and the amount you will receive, confirm the transaction. The sale executes immediately, and the proceeds are credited to your USDF balance.
How a Sale Works On-Chain
When you confirm a sale, a series of automated actions occur to ensure the integrity of our 1:1 backing model. This is not just a peer-to-peer trade on our platform; it is a true redemption process that connects on-chain activity with traditional financial markets.
First, the on-chain token representing the share you sold is burned, which permanently removes it from circulation. Simultaneously, our system instructs the custodian broker, such as Interactive Brokers or Alpaca Markets, to sell the corresponding underlying share in the traditional market. This ensures that the total supply of any given tokenized stock on our platform always matches the number of real shares held in custody. You can verify this for yourself at any time on our Proof of Reserves page, which shows the live on-chain supply against the attested assets held at our brokers.
This redemption mechanism is fundamental to the trust and liquidity of tokenized assets. Major financial institutions recognize its importance. Reports from firms like J.P. Morgan emphasize that standardized and efficient redemption is critical for the tokenization market to scale. By linking every on-chain token to a real-world share that can be sold, we ensure your asset's value is always grounded in the regulated public market.
The RFQ Advantage: Price Certainty and Zero Slippage
Our platform uses a Request-For-Quote (RFQ) execution model to protect you from price volatility. When you prepare to sell, our system requests a firm price from multiple regulated market-making partners. The price you see on the confirmation screen is the exact price you will get, with our trading fee already included. This is different from a market order on a traditional exchange, which can be filled at a price different from what you expected, an effect known as slippage.
With RFQ, the quoted price is locked in for a short period, giving you time to confirm the sale without the market moving against you. If the market moves beyond the configured tolerance (defaulted at 0.5%) before you confirm, the trade does not execute, and you simply receive a fresh quote. This provides price certainty and protects the value of your sale.
Selling on GM Markets vs. Traditional Brokers: A Comparison
Understanding the differences between selling a tokenized stock on our platform and selling a traditional stock through a conventional broker highlights the advantages of on-chain finance.
| Feature | GM Markets | Traditional Brokerage |
|---|---|---|
| Settlement Speed | Instant. Sale proceeds are available in your USDF balance immediately. | T+1 (one business day). Funds are not available for withdrawal until the trade officially settles. |
| Market Hours | 24/7. Orders can be placed at any time. Out-of-hours orders are queued on-chain and execute at market open. | Limited to standard market hours, typically 9:30 AM to 4:00 PM ET on weekdays. |
| Fees | A single, transparent trading fee of 0.10% to 0.20%, included in the quote. No withdrawal fees from our platform. | Can include trading commissions, payment for order flow, wire transfer fees, and account maintenance fees. |
| Withdrawal Flexibility | Withdraw as stablecoins (USDC, USDT) on-chain or off-ramp to fiat via various methods. | Primarily limited to fiat withdrawals via bank transfer (ACH or wire). |
| Asset Control | Self-custodial. Your assets are held in your own embedded wallet, giving you direct control. | Custodial. The broker holds your shares on your behalf, and access is controlled by them. |
This structure provides a significant speed advantage. While traditional US stock markets recently moved to a T+1 settlement cycle, as mandated by amendments to SEC Rule 15c6-1, our on-chain sales settle in your USDF account instantly.
Withdrawing Your Funds: On-Chain and Off-Ramp Options
Once your sale proceeds are in your USDF balance, you have two primary methods for withdrawal. You can move the funds on-chain as stablecoins or convert them to fiat currency sent to your bank account or card.
On-Chain Withdrawals
For users who want to keep their capital in the crypto ecosystem, on-chain withdrawal is the most direct method. You can send your balance as USDC or USDT to an external wallet on any of our supported networks: Base, Arbitrum, Optimism, and Ethereum. We do not charge a fee for this service. However, to cover the cost of the blockchain transaction, a small, flat network fee is passed through to you. This fee is disclosed upfront in the transfer window before you confirm. Our gas abstraction model means this fee is deducted from your stablecoin balance, so you do not need to hold the network's native token (like ETH) to make the withdrawal.
Fiat Off-Ramp Withdrawals
You can also convert your USDF balance to traditional currency. We work with integrated third-party payment processors to facilitate these transactions securely within the platform. This provides a simple way to move your investment returns back into the traditional financial system. Several types of methods are generally available, each with different trade-offs between speed and cost:
- Bank Transfers (ACH, SEPA, Wire): These are often the most cost-effective methods for larger amounts but can take 1-3 business days to settle in your account.
- Debit and Credit Card Withdrawals: This is typically the fastest option, with funds often arriving in minutes, but it usually comes with higher processing fees from the payment provider.
The available methods may depend on your jurisdiction. Any fees charged by the third-party processor will be clearly displayed before you confirm the transaction.
Security Measures for Withdrawals
Protecting your funds is our highest priority. Every withdrawal is secured by the robust architecture of your embedded wallet, which is operated by Privy using multi-party computation (MPC). This technology ensures no single party, including GM Markets, ever has access to your complete private key.
To authorize a transaction, you will use your device's passkey or biometrics, confirming the action in a secure interface. This prevents unauthorized access to your funds. For enhanced security, any withdrawal request exceeding $10,000 requires a second-factor authentication step. You can find more details about our comprehensive approach on our Security page.
Please note that our services are designed for a global audience and are not offered to users in the United States or other restricted jurisdictions.
Frequently Asked Questions
What is USDF and why do I receive it when I sell?
USDF is our platform's unified stablecoin balance, backed 1:1 by USDC and USDT. When you sell an asset, the proceeds are credited as USDF for immediate, stable liquidity. This allows you to hold your funds, reinvest in other assets, or withdraw without being exposed to market volatility.
How are withdrawal gas fees handled for on-chain transactions?
We use a gas abstraction system. Instead of you needing to hold native tokens like ETH to pay for gas, we cover the transaction on the blockchain and deduct a corresponding small, flat fee from your stablecoin withdrawal amount. This fee is shown to you before you confirm the withdrawal, ensuring transparency.
Why is my sale instant when stock market settlement is T+1?
Your transaction with GM Markets settles instantly on-chain, crediting your account with USDF. This is separate from the back-end settlement in the traditional market. We provide you with immediate liquidity from our own balance sheet while the corresponding redemption of the underlying share settles on the T+1 timeline between us and our custodian broker.
Are there tax implications when I sell my tokenized stocks?
Selling a tokenized stock is a disposal of an asset and may be a taxable event depending on your jurisdiction's regulations. We provide a downloadable CSV of your transaction history from your Portfolio to assist with your accounting. You are responsible for your own tax obligations, and we recommend you consult a professional tax advisor.
What happens if the market is closed when I want to sell?
You can place a sell order at any time, 24/7. If the underlying market for the stock is closed, your order will be queued on-chain. It will be executed automatically at a new, live quote as soon as the market reopens and liquidity is available.
Take Control of Your Assets
GM Markets provides a complete, secure, and transparent cycle for your investments, from purchase to liquidation. The ability to seamlessly sell your tokenized assets and withdraw the proceeds gives you true control and flexibility over your capital. Whether you choose to move your funds on-chain or back to your bank, the process is designed to be direct and efficient.
All investments carry risk, including the potential loss of principal. The value of tokenized stocks can be volatile, and the process involves settlement, counterparty, and smart contract risks. Please review our full risk disclosures before trading. Ready to manage your holdings? Head to your Portfolio.
