How and Where to Buy Alibaba tokenized stock Bittrex (BABA) – An Easy Step by Step Guide
CryptoBuyingTipsHow and Where to Buy Alibaba tokenized stock Bittrex (BABA) – An Easy Step by Step Guide
Tokenized stocks are tokenized derivatives that represent traditional securities, particularly shares in publicly firms traded on regulated exchanges. The key benefits of tokenized stocks include fractional ownership of traditional securities, 24/7 access to markets, and greater liquidity to name a few. These digital assets are backed 1:1 to traditional stocks, entitling holders to many of the same economic benefits of owning the underlying stock.
Tokenized stocks are a tokenization of a digital total return swap contract (“TRS”) (similar to contracts for differences). The Tokenized stocks value is based on and collateralized with the underlying asset, a traditional security (typically a publicly traded equity) and the value of the digital asset is determined by the value of the traditional security. For example, they are collateralized by an equivalent notional amount of the traditional security (i.e., $100 of the debt derivative would be collateralized with $100 of the traditional security). This allows Tokenized stocks to mirror the economic performance of the applicable reference traditional securities.
The current price of BABA is $157.26 and is ranked 3585 on Coinmarketcap and has recently surged 57.26 percent at the time of writing.