Tokenized stocks FAQ

Tokenized stocks are blockchain-based tokens designed to mirror the price performance of publicly traded stocks or Exchange-traded funds (ETFs), also known as synthetic stocks. They provide on-chain price exposure without granting ownership rights to the underlying company.

Unless explicitly stated by the provider, tokenized stocks do not include shareholder benefits such as dividends or voting rights.

Note: Tokenized stocks don't represent actual ownership of the underlying equities. They only provide price exposure and don't grant shareholder rights, such as voting or dividends, unless explicitly stated by the provider. Prices can be volatile, and you may lose part or all of your funds. Features, fees, and availability will also vary based on the guidelines set by the third-party provider. It's crucial to always conduct your own research before trading.

This product may not be available in all regions. For more on regulatory jurisdictions, refer here.

Disclaimer
Tokenized stocks are not issued by OKX. Instead, they are issued and managed by third-party providers. This FAQ is for informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any tokenized stock.

FAQ

1. Who issues tokenized stocks?

Tokenized stocks are issued by third-party providers. In this case, the third party provider will be Ondo.

Depending on the third party provider, tokenized stock may vary in:

• Token structure

• Trading mechanics

• Fees

• Handling of corporate actions

Always review the provider’s official documentation before trading. For more details on Ondo, you can refer to Ondo's official documentation here.

2. What are the minimum trade sizes and fees?

• Minimum trade size is often determined by the provider

• For fees, they're as follow:

  • Varies depending on the provider

  • Network (gas) fees apply for on-chain actions such as swaps or cancellations

For the most up-to-date information regarding Ondo's fee structure, you can refer to Ondo's official documentation.

3. Can tokenized stocks be transferred on-chain?

Yes. Tokenized stocks are native on-chain assets that can operate directly on blockchain.

After purchase, you can:

• Hold them in your OKX DEX wallet or

• Transfer them on-chain to other compatible wallets

This means you have full custody and control over your tokenized assets at all times.

4. How can I trade tokenized stocks in OKX DEX?

You can trade tokenized stocks on OKX DEX via OKX Wallet app or web. Before trading, ensure you have:

• USDT or USDC for trading.

• BNB for network fees.

• Sufficient wallet balance to avoid failed transactions.

OKX Wallet app

1. Open the OKX Wallet app and select DEX

2. Select a tokenized stock

3. Enter the amount (minimum $20)
   Note: for market orders, you can adjust slippage tolerance and network fees.

4. Submit the order

5. Check the My orders part for your orders, and the My positions option for your holdings

OKX Wallet web

1. Select a tokenized stock

2. Enter the amount (minimum $20)

3. Submit the order

4. Check the My orders part for your orders, and the My positions option for your holdings

5. Where are my funds after placing a trade?

Your assets remain in your wallet until the transaction is executed on-chain. Ensure you have the required amount as if your wallet balance is insufficient (including gas fees), the transaction may fail or remain unexecuted.

6. How do I view orders?

You can view all active orders and your transaction history directly from your connected wallet interface or extension

7. What are the fees for trading tokenized stocks?

While there are currently no trading fees, all trade actions will require native network gas fees.

8. What are the trading hours (UTC) for tokenized stocks?

Tokenized stocks follow provider-defined trading sessions. In the case of Ondo-issued tokenized stocks, trading hours are structured as follows:

Trading Sessions (UTC)

• Overnight: 00:05 – 07:55
  Similar to post-market conditions, with lower liquidity and sharper price movements, often driven by global events.

• Pre-market: 08:01 – 13:29
  Trading before the regular session opens, typically at a lower volume and higher volatility.

• Market hours: 13:31 – 19:59
  Standard trading session with the highest liquidity and volume.

• Post-market: 20:01 – 23:59
  With fewer liquidity providers active, spreads may widen and volatility may increase.

Market Closed

• Weekends: From Friday 23:59 to Monday 00:05 (UTC)

• Public holidays: Follows U.S. stock market holidays

Trading halts: there might also be times where trading of the underlying stock is paused. During such times, token prices can increase in volatility.

Note: Liquidity may be limited when trading native tokens during pre-market, post-market, or overnight sessions. It's recommended to trade using stablecoins.

9. Are tokenized stocks available in all jurisdictions?

No. Availability depends on local regulations. Users are responsible for understanding and complying with the laws applicable in their jurisdiction. For more information, please refer to guidance issued by your local financial regulatory authority and Ondo’s official documentation.

10. How are corporate actions handled?

Corporate events may affect token pricing or result in temporary trading pauses. These events include:

• Dividends

• Stock splits

• Mergers

• Earnings announcements

Handling of these events varies by provider. Some providers may automatically reinvest dividends, while others may have different methods of handling such corporate actions. You can refer to Ondo's official documentation for more details.

11.What are the tips for trading tokenized stocks?

When trading tokenized stocks, you should keep the following in mind:

• Prices can fluctuate rapidly and could lead to partial or total loss of invested assets.

• Liquidity varies across trading sessions

• Tokenized stocks generally do not provide shareholder rights

• Always conduct your own research to review provider terms, risk disclosures, and regulations that might apply to you prior to trading.

12. Can I purchase fractional shares of a tokenized stock?

Yes. Tokenized stocks do support fractional exposure, but these are also subject to the provider’s minimum trade size requirements.

13. How do I identify the underlying stock for a tokenized stock?

Token names and symbols are defined by the provider and may differ from traditional ticker symbols.You can verify the mapping between tokens and their underlying stocks through the provider’s official documentation.

Provider information

For detailed information on features, trading mechanics, corporate actions, and the mapping of token symbols to their underlying stocks, you can refer to Ondo's official documentation here.