Okay, here is a detailed article based on the provided PR Newswire headline and publication details, written in an easy-to-understand manner.
MyStonks Unveils On-Chain U.S. Stock Marketplace with Full Custody Backing, Revolutionizing Access to Equities
[CITY, STATE] – May 10, 2025 – 5:05 PM ET – MyStonks today announced the official launch of its innovative marketplace, bringing tokenized U.S. stocks onto the blockchain with a key feature: 100% custody backing. According to a press release published via PR Newswire, the company is positioning this new platform as an “industry-leading” solution designed to democratize access to the U.S. equity market for investors worldwide.
What are Stock Tokens?
Before diving into the details of MyStonks’ offering, it’s helpful to understand what stock tokens are. Simply put, a stock token is a digital asset on a blockchain that represents ownership of a traditional share of stock in a company (like Apple, Google, or Tesla). It aims to combine the benefits of traditional stock ownership with the advantages of blockchain technology.
Bridging Traditional Finance and Blockchain
Traditionally, investing in U.S. stocks can be challenging for people outside the United States due to factors like international brokerage account requirements, currency exchange fees, minimum investment amounts, and limited trading hours based on U.S. time zones. Even within the U.S., fractional ownership (buying less than a full share) isn’t always easily accessible through all brokers.
MyStonks’ new platform tackles these issues by leveraging blockchain. By tokenizing stocks, they can potentially offer:
- Increased Accessibility: Allowing individuals globally to invest in U.S. companies more easily, potentially with fewer geographical restrictions.
- Fractional Ownership: Enabling users to buy fractions of expensive stocks, making investments more affordable.
- 24/7 Trading: Blockchain networks operate around the clock, potentially allowing for trading beyond traditional market hours (though actual trading windows might still be influenced by underlying market liquidity or platform design).
- Transparency: Transactions recorded on a public blockchain can offer a higher level of transparency compared to traditional systems.
- Potential for DeFi Integration: Tokenized assets can theoretically be used within decentralized finance protocols for lending, borrowing, and other financial activities, opening up new possibilities for investors.
The Cornerstone: 100% Custody Backing
A critical element MyStonks is emphasizing is its “100% custody backing.” This means that for every single stock token issued on their platform, an actual, real share of the underlying stock is held in a secure, regulated custody account.
Why is this important?
- Security and Trust: It provides a direct link between the digital token and the physical asset. Investors can be more confident that their token truly represents ownership of a real stock share.
- Asset Protection: The underlying stocks are held by a professional custodian, typically a regulated financial institution, adding a layer of security against potential platform issues.
- Value Stability: The value of the token should directly reflect the value of the underlying stock, backed by the physical asset.
This model aims to distinguish MyStonks from platforms that might use synthetic assets or other complex structures, by providing a straightforward, fully-backed representation of real stock ownership on the blockchain. MyStonks’ claim of this being an “industry-leading” feature likely points to the robustness or clarity of this backing compared to other existing tokenized asset platforms.
What This Means for Investors
For individuals looking to invest in the U.S. stock market, the MyStonks platform could offer a new pathway, especially for those facing barriers with traditional brokers. The ability to buy fractions of shares and potentially trade outside standard hours via a blockchain-based system, all while knowing the tokens are fully backed by real assets, could be highly appealing.
As the platform rolls out, investors will likely be keen to understand the range of stocks available, the fees involved, the regulatory environment under which MyStonks operates (and its custodian), and the ease of depositing/withdrawing funds and assets.
The launch of MyStonks’ marketplace marks a significant step in the ongoing convergence of traditional finance and blockchain technology, offering a potentially more accessible and transparent way for people around the world to participate in the U.S. stock market.
MyStonks Launches Industry-Leading On-Chain U.S. Stock-Token Marketplace with 100% Custody Backing
The AI has delivered the news.
The following question was used to generate the response from Google Gemini:
At 2025-05-10 17:05, ‘MyStonks Launches Industry-Leading On-Chain U.S. Stock-Token Marketplace with 100% Custody Backing’ was published according to PR Newswire. Please write a detailed article with related information in an easy-to-understand manner. Please answer in English.
259