Tokenized Stocks vs Real Stocks: Differences, Dividends, & Stock Splits

• Are tokenized stocks the same as real stocks?
• What’s the difference from conventional stocks?
• Do tokenized stocks pay dividends?
• Can I redeem tokenized stocks for real stocks?
• If there’s a stock split/reverse split, is my balance affected?

Are tokenized stocks the same as real stocks?

Tokenized stocks mirror the real stock’s price and provide economic exposure, but they don’t grant direct ownership rights like voting rights.

What’s the difference between tokenized stocks and conventional stocks?

• Tokenized stocks can be traded 24/7, while conventional stocks only trade during exchange hours.
• You can buy fractional shares, without needing to buy a full lot.
• Tokenized stock holders don’t receive dividends in cash (see the full explanation below).

Do tokenized stocks pay dividends?

No, tokenized stocks don’t distribute dividends in cash.

Instead, dividends are automatically reinvested into the same token. This means your tokenized stock token balance increases to reflect that dividend, following a multiplier set by each issuer (xStocks or Ondo).

Can I redeem tokenized stocks for real stocks on the Pintu app?

No. You can’t redeem a tokenized stock for its real share on the Pintu app.

If there’s a stock split/reverse split, is my balance affected?

When a stock split or reverse split occurs, Backed Finance updates the token with a new multiplier reflecting the split ratio (e.g., a 2:1 stock split).

As a result, all token holders will see their token balance increase, while their proportional ownership stays the same.