Understanding Tokenized Berkshire Hathaway: Accessing Blue-Chip Equities On-Chain
Explore how tokenization on GM Markets provides global access to blue-chip equities, using Berkshire Hathaway's unique structure to illustrate fractional ownership and DeFi composability.
Understanding Tokenized Berkshire Hathaway: Accessing Blue-Chip Equities On-Chain
Berkshire Hathaway (BRK.A, BRK.B) is a multinational conglomerate renowned for its unique dual-class share structure and long-term investment philosophy. It represents a significant blue-chip asset for investors seeking exposure to a diversified portfolio. The high price of its Class A shares (BRK.A) historically presented an accessibility challenge, while Class B shares (BRK.B) offer a more affordable entry point.
The rise of decentralized finance (DeFi) has opened new avenues for investors to access traditional equities on-chain. Investors globally seek permissionless, efficient, and composable ways to integrate the stability of blue-chip stocks into their digital asset strategies. GM Markets addresses this need by providing a secure and self-custodial platform for non-US users to engage with tokenized US stocks and ETFs. While Berkshire Hathaway shares may not be currently listed, this post illustrates how the principles of tokenization on GM Markets enable access to blue-chip equities with similar characteristics, leveraging Berkshire Hathaway's structure as a prime example.
The Unique Appeal of Berkshire Hathaway's Dual-Class Shares
Berkshire Hathaway is distinguished by its two classes of common stock: Class A (BRK.A) and Class B (BRK.B). This structure allows for broad investor access while maintaining the original investment philosophy.
Class A (BRK.A) vs. Class B (BRK.B) Shares
- Class A Shares (BRK.A): These are famously expensive, often trading in the hundreds of thousands of dollars per share, making them among the highest-priced shares globally. This pricing strategy historically aimed to attract long-term, value-oriented investors. BRK.A shares carry significantly more voting power, with 10,000 times the voting rights of a Class B share, and can be converted into 1,500 Class B shares. Warren Buffett consistently refused to split Class A shares.
- Class B Shares (BRK.B): Introduced in 1996, BRK.B shares offer a much more affordable entry point, typically trading in the hundreds of dollars. This makes them accessible to a wider range of individual investors. Each Class B share has 1/10,000th of the voting rights of a Class A share, and they cannot be converted into Class A shares. Class B shares underwent a 50-for-1 stock split in 2010 to further increase accessibility.
Both BRK.A and BRK.B shares represent ownership in the same underlying company and provide identical economic exposure to Berkshire Hathaway's diverse portfolio. Neither class typically pays dividends, as the company reinvests its earnings for growth. From 1965 to 2023, Berkshire Hathaway's shareholder returns achieved a compound annual growth rate of 19.8%, significantly outperforming the S&P 500's 10.2% over the same period, demonstrating its historical strength. Berkshire Hathaway's annual reports provide detailed performance data and insights into its investment strategy.
Why Tokenize Blue-Chip Equities Like Berkshire Hathaway?
Tokenization offers a distinct set of advantages for accessing blue-chip equities, particularly relevant for stocks with high share prices or those sought by a global audience:
- Fractional Ownership: High-value stocks such as BRK.A, with its substantial share price, are often inaccessible to many investors. Tokenization allows for fractional ownership, meaning you can buy a portion of a share for as little as $1. This makes even the most exclusive equities accessible to a broader audience.
- Global Accessibility: Tokenized stocks provide permissionless trading for users in eligible jurisdictions outside the United States. This expands access to the US equity market for a global investor base that might otherwise face significant barriers.
- Self-Custody and Security: When you acquire tokenized stocks on GM Markets, these tokens are held in your embedded Multi-Party Computation (MPC) wallet. This model ensures you retain direct custody and control over your assets, enhancing security and autonomy.
- DeFi Composability: The ERC-20 nature of the tokens means your tokenized blue-chip holdings can become productive capital within DeFi. You can utilize your tokenized assets as collateral for loans, supply them for lending, or provide liquidity across various decentralized protocols. This allows equity exposure to become productive capital.
- 24/7 Access: While underlying US stock markets operate during specific hours, our platform allows you to place orders for tokenized stocks anytime. Out-of-hours orders are queued on-chain and fill when liquidity appears or the market opens, facilitating continuous engagement with your investments.
How GM Markets Facilitates Access to Blue-Chip Tokenized Stocks
Acquiring tokenized blue-chip stocks on GM Markets is a straightforward process designed for efficiency and accessibility. While specific listings, including Berkshire Hathaway (BRK.A or BRK.B), may vary and should be checked on the live platform, the following steps outline the general procedure for trading other tokenized US stocks and ETFs:
Step 1: Connect Your Wallet or Create an Account
To begin, visit the GM Markets platform. You can connect an existing external crypto wallet or create a new account using your Google ID or an email magic-link. Our embedded wallets, powered by Privy, utilize Multi-Party Computation (MPC) technology. This means your private key is never held by a single entity, including GM Markets, providing enhanced security for your digital assets.
Step 2: Deposit Funds
Once your account is set up, you will need to fund it. GM Markets accepts deposits via stablecoins such as USDC and USDT, which are unified into USDF, our internal stablecoin balance. We also support fiat payment rails, including Apple Pay, card, and bank transfers, offering flexibility for your funding preferences. Deposits are free.
Step 3: Navigate to Your Desired Blue-Chip Stock
Use the search function within the GM Markets platform to find the tokenized stock you wish to acquire. For instance, you would search for a blue-chip asset like 'AAPL' or 'NVDA'. Our platform provides real-time market data to help you make informed decisions.
Step 4: Place Your Trade
After selecting your desired stock, enter the amount you wish to buy. GM Markets utilizes a Request-For-Quote (RFQ) execution model, where regulated market-making partners provide quotes against the live underlying market. Before confirming, you will review an all-inclusive quoted price, which incorporates our transparent trading fee of 10 to 20 basis points (0.10% to 0.20%). The "You will receive" line is final, with no hidden charges. Confirm the trade to proceed.
Step 5: Confirm On-Chain Settlement
Upon successful execution, your newly acquired tokenized stock will appear directly in your self-custodial wallet. All trades are settled on-chain across supported networks such as Base, Arbitrum, Ethereum, and Optimism, ensuring transparency and immutability of your ownership.
Security and Transparency: How GM Markets Protects Your Investment
Trust is paramount when dealing with financial assets, and GM Markets has built its platform on a foundation of robust security and unwavering transparency. We understand the importance of safeguarding your investments, which is why we employ several critical measures:
- 1:1 Backing and Segregated Accounts: Every tokenized stock on our platform is backed 1:1 by an actual share of the underlying asset. These physical shares are held in segregated customer accounts at regulated broker-dealers, specifically Interactive Brokers and Alpaca Markets. This separation ensures that your assets are distinct from our operational funds and are held under the protections of their respective jurisdictions.
- Real-time Proof of Reserves: To provide verifiable assurance of backing, we partner with Accountable, a third-party proof-of-reserves provider. Accountable independently attests our reserves on-chain in real time by directly reading broker balances. This transparent process allows you to verify the backing ratio for each asset on our Proof of Reserves page. As of a recent attestation (July 11, 2026, 2:32 AM UTC), our total underlying custody value was $107.73K across 8 different assets, with a backing ratio of 106.30%.
- MPC Wallet Security: Our embedded wallets, powered by Privy, use Multi-Party Computation (MPC) technology. This advanced cryptographic method ensures that no single party, including GM Markets, ever holds the complete private key to your wallet. The key is split into multiple shares, requiring collaboration from several parties to sign transactions, significantly enhancing the security of your self-custodial assets.
- Smart Contract Audits: The integrity of our platform's underlying smart contracts is critical. We engage leading blockchain security firms, including Sherlock, Halborn, Cantina, and Cyfrin, to conduct thorough audits. These independent reviews help identify and mitigate potential vulnerabilities, ensuring the reliability and security of our tokenization rails.
Understanding Fees and Corporate Actions
Transparency in pricing and a clear understanding of how corporate actions affect your tokenized holdings are essential components of our platform.
Transparent Trading Fees
We operate on a straightforward fee structure. Our single trading fee ranges from 10 to 20 basis points (0.10% to 0.20%), with the default being 20 bps and dropping to 10 bps for our highest VIP tier members based on 14-day trading volume. This fee is always included in the quoted price you see before confirming a trade, meaning the "You will receive" amount is final. We do not charge custody fees, inactivity fees, dividend cuts, or foreign exchange (FX) markups. Gas fees for on-chain transactions are abstracted and billed in USDF from your balance, so you never need to hold native chain tokens.
Free Deposits and Withdrawals
Funding your account and withdrawing your assets should be effortless and cost-free. We ensure that all deposits and withdrawals, whether via stablecoin, Apple Pay, card, or bank transfer, incur no additional fees from GM Markets. This commitment to cost-efficiency allows you to manage your capital without unexpected charges.
Total-Return NAV Model for Corporate Actions
Unlike traditional stock ownership where dividends are typically paid out as cash, our tokenized stocks operate on a total-return Net Asset Value (NAV) model. For companies like Berkshire Hathaway that reinvest earnings and do not typically issue cash dividends, this model ensures that any value accrual is reflected in the token's on-chain NAV.
For companies that do issue dividends, that dividend is used to buy more of the underlying shares. This action increases the token's on-chain NAV, reflecting the enhanced value of your holding directly in the token's price rather than as a separate cash distribution. Similarly, other corporate actions, such as stock splits, special distributions, spin-offs, mergers, or name changes, are absorbed into the token's on-chain NAV. This ensures that your economic exposure precisely tracks the underlying asset's performance, maintaining the integrity of your investment without requiring manual adjustments or separate payouts.
Frequently Asked Questions
Can I vote with tokenized Berkshire Hathaway stock?
No. Holding tokenized stock on GM Markets provides economic exposure to the underlying asset's price movements and any value accrual (via NAV appreciation), but it does not confer traditional shareholder voting rights or other direct corporate governance privileges, regardless of the share class (BRK.A or BRK.B).
What are the risks associated with trading tokenized stocks?
While tokenized stocks offer significant advantages, they carry inherent risks. Markets can move against you, leading to potential loss of capital. Tokenized stocks also involve settlement, counterparty, smart-contract, and custody risks. We encourage all users to understand these risks thoroughly. You can find more detailed information on our risk and legal page. GM Markets does not provide financial, investment, tax, or legal advice.
Is GM Markets available in my country?
GM Markets is designed for global accessibility, but we do not offer our products or services to users in the United States or other restricted jurisdictions. The list of restricted jurisdictions is maintained operationally and may be updated as regulations evolve.
How do I withdraw my funds or tokens from GM Markets?
You can withdraw your funds or tokenized assets directly from your self-custodial wallet on the GM Markets platform. Withdrawals are free and can be made to stablecoin addresses or back to your linked bank account or card, depending on your initial deposit method and local availability.
Your Access Point to Blue-Chip Equities On-Chain
GM Markets provides a robust, transparent, and compliant platform for global investors seeking to access blue-chip equities on-chain. By offering fractional ownership, self-custody through MPC wallets, and full DeFi composability, we are connecting traditional finance and the decentralized world. Our commitment to 1:1 backing, real-time proof of reserves, and audited smart contracts ensures a secure and trustworthy environment for your investments. The industry continues to discuss the regulatory treatment of synthetic tokenized stocks versus issuer-backed versions, with some advocating for issuer-backed tokens that confer direct shareholder rights. The DTCC, for example, has published research on the opportunities and considerations for tokenized assets in financial markets.
We encourage you to explore the range of tokenized US stocks and ETFs available on GM Markets and discover how our platform can enhance your investment strategy. Begin your on-chain trading journey with confidence, knowing you have direct custody and transparent access to the world's leading equities. We do not serve users in the United States or other restricted jurisdictions.
