How to Start Trading Tokenized Stocks with Just $1
Learn how to trade tokenized stocks with as little as $1. This guide covers 1:1 asset backing, fractional investing, self-custody, and a 4-step process to start.
How to Start Trading Tokenized Stocks with Just $1
The global financial markets are undergoing a fundamental transformation, driven by technology that makes them more accessible and efficient. At the center of this shift are tokenized stocks, which represent a powerful new way for individuals worldwide to invest in leading companies. A tokenized stock is a digital, on-chain representation of a real-world share, combining the price exposure of a traditional stock with the efficiency and self-custody of a crypto asset.
On our platform, this is not a synthetic product or a contract-for-difference (CFD). For every tokenized stock we issue, one corresponding share of the actual company is purchased and held in a segregated customer account at a regulated, third-party broker, such as Interactive Brokers. This 1:1 backing is the core of our model, ensuring each token has a direct, verifiable claim on the underlying asset. You can audit this claim yourself, in real time. We use an independent, on-chain proof-of-reserves provider, Accountable, to continuously monitor the shares held at our brokers and compare them against the total supply of tokens issued. This data is public on our Proof of Reserves page, which currently shows approximately $321 million in attested assets, all 100% backed.
This structure is part of a much larger shift. The market for tokenized assets is expanding rapidly as investors recognize the benefits of bringing real-world value onto programmable, efficient blockchain networks. A May 2021 report from the World Economic Forum explored the transformative impact of distributed ledger technology on capital markets. This growth is also reflected in market data. According to a report from CoinGecko, between January 2024 and May 2024, the number of listed tokenized stock coins surged by 3,314%, from 14 to 478, with the spot market reaching $487 million. This trend signals a clear demand for more modern, accessible financial instruments.
Key Advantages of Trading Tokenized Stocks
Trading stocks through tokenization offers several distinct advantages over traditional brokerage models, particularly for investors operating outside the complex and often restrictive U.S. financial system.
Global Accessibility and Lower Costs
Opening a traditional U.S. brokerage account from another country can be a difficult process, often involving extensive paperwork, high minimum deposits, and costly international wire fees. These fees can range from $20 to over $100 per transaction when intermediary and receiving bank charges are included, as documented by financial analysis from firms like Veem. Tokenization removes these barriers. Our platform allows anyone to access the market directly from a crypto wallet, reducing transaction costs and eliminating the friction of the legacy banking system.
Fractional Investing from $1
You do not need hundreds or thousands of dollars to buy a full share of a high-priced stock like NVIDIA or Tesla. Our platform allows you to buy a precise fraction of a share with as little as $1.00. This makes it possible to build a diversified portfolio even with a small amount of capital, enabling an investor to gain exposure to multiple leading companies with a modest initial investment.
Self-Custody and Full Control
In a traditional brokerage, your assets are held in a custodial account controlled by the firm. With tokenized stocks on GM Markets, your assets live in your own wallet. We use secure, embedded wallets powered by Privy's multi-party computation (MPC) technology. This means the private key to your wallet is split into multiple shares, and no single party, including us or Privy, has access to the complete key. This model gives you direct control and significantly reduces counterparty risk.
On-Chain Composability
Because they are standard ERC-20 tokens, your tokenized stocks can be used across the decentralized finance (DeFi) ecosystem. This transforms a static investment into a productive, yield-bearing asset. You can use your tokenized stock positions as collateral on lending protocols like Aave and Morpho, provide liquidity to trading pools on decentralized exchanges, or engage in other on-chain strategies. This allows your capital to work for you in multiple ways simultaneously.
Nearly Instant Settlement
Traditional U.S. stock trades operate on a T+1 settlement cycle, meaning it takes one full business day after the trade for the ownership to officially transfer and for cash to become available for withdrawal. This delay creates capital inefficiency. On-chain trades settle nearly instantly, directly on networks like Base, Arbitrum, and Optimism. This T+0 settlement means your capital is available immediately after a trade, allowing you to react to market opportunities without delay.
How to Start Trading on GM Markets in 4 Steps
Getting started on our platform is a permissionless process designed to be completed in minutes. Here is a detailed guide to executing your first trade.
- Create or Connect a Wallet: You can onboard using your Google account, an email magic-link, or by connecting an existing Web3 wallet like MetaMask. If you use Google or email, we automatically create a secure, self-custodial MPC wallet for you. This process requires no lengthy applications or manual review.
- Fund Your Account: Deposit stablecoins such as USDC or USDT from an external wallet or exchange. On our platform, these deposits are automatically converted into a unified balance of USDF, which is backed 1:1 by your deposited assets. This unified balance allows for seamless trading across all our supported assets and chains.
- Choose an Asset: Browse our available markets to find the tokenized stock or ETF you wish to trade. You can find popular tickers like NVDA, TSLA, and SPY. Our list of tradable assets is always expanding based on user demand and liquidity.
- Execute Your First Trade: Once you select an asset, you will use our Request-For-Quote (RFQ) system. Simply enter the dollar amount you want to invest, for example, $1.00. You will receive a live, executable quote from our network of professional market makers. This price is final and includes all fees. Unlike a public order book where prices can slip, an RFQ quote is held for a short window, and if the market moves beyond the default 0.5% slippage tolerance, the trade is simply repriced, protecting you from unexpected costs. Confirm the transaction, and the tokenized stock settles in your wallet almost instantly.
Understanding Security and Costs
Transparency in both security and pricing is essential for building trust. Here is a detailed breakdown of how our platform is structured to protect your assets and provide clear, simple pricing.
A Simple, Transparent Fee Structure
Our revenue model consists of a single trading fee that ranges from 10 to 20 basis points (0.10% to 0.20%), depending on your 14-day trading volume. This fee is already included in the price you are quoted, so the amount you see is the amount you get. We do not charge any fees for deposits, withdrawals, custody, or account inactivity. You can see the full fee structure on our Pricing page. The tiers are as follows:
| VIP Tier | 14-Day Volume (USDF) | Trading Fee |
|---|---|---|
| 1 | < $1,000 | 0.20% |
| 2 | $1k - $10k | 0.175% |
| 3 | $10k - $100k | 0.15% |
| 4 | $100k - $1M | 0.125% |
| 5 | >= $1M | 0.10% |
A Multi-Layered Security Model
Our security relies on multiple layers. The 1:1 backing of assets in segregated accounts at regulated brokers is the foundational layer. The second is our use of audited smart contracts and secure wallet infrastructure. Our contracts are regularly audited by leading security firms, including Sherlock, Halborn, Cantina, and Cyfrin, and we are pursuing a SOC 2 Type II certification to further validate our operational controls. This comprehensive approach is aligned with emerging global standards from bodies like the International Organization of Securities Commissions (IOSCO), which advocate for robust regulation and investor protection for digital assets. You can learn more on our Security page.
Total Return Model for Dividends
When a company pays a dividend, we handle it through a total return model. The cash from the dividend is used to purchase more of the underlying stock, which increases the Net Asset Value (NAV) of your token. This means the value of the dividend is automatically reflected in your token's price rather than being paid out as a separate cash distribution. This process is automatic and can be more efficient from a tax perspective in certain jurisdictions, as it may not create a separate taxable event. Please consult a local tax professional for specific advice.
Jurisdictional Notice
Please note that GM Markets is a global platform and is not available to users in the United States or other restricted jurisdictions.
Frequently Asked Questions
What am I actually buying?
You are buying a token that represents a 1:1 ownership claim on one share of the underlying company stock. This token is a digital asset held in your personal crypto wallet and is fully backed by a real share held in a segregated account at a regulated broker.
How do I know my tokens are really backed by shares?
You can verify our reserves at any time on our public Proof of Reserves page. This dashboard provides a real-time, on-chain attestation from our independent partner, Accountable, showing the exact assets held in custody versus the tokens we have issued. This radical transparency is a core feature of our platform.
What happens to my assets if GM Markets goes out of business?
Your assets are protected from our operational status. The underlying shares are held in segregated accounts, legally separate from our company's balance sheet. In the event we discontinue operations, a designated security agent is empowered by our on-chain contracts to work with the custodian to redeem all outstanding tokens for the underlying shares.
Do I get voting rights like a normal shareholder?
No. Our tokenized stocks are designed to provide you with direct economic exposure to the asset, including price movements and dividends, but they do not confer the voting rights that come with holding shares directly at a traditional broker. Your ownership is represented by a direct, verifiable claim on the underlying share's economic value. This structure prioritizes financial access and on-chain utility over corporate governance participation.
Getting Started with Tokenized Stocks
Tokenization is making global financial markets more open, efficient, and accessible than ever before. With platforms like GM Markets, you can gain direct exposure to U.S. stocks with as little as $1, benefit from the security of self-custody, and unlock the potential of your assets in the world of DeFi.
You can explore our available markets and execute your first trade today. As with any investment, it is important to understand the risks. The value of stocks can go down as well as up, and digital assets carry unique risks related to smart contracts, settlement, and custody. For a full overview, please review our legal and risk disclosures.
