Written by: Shao Jiadine, Huang Wenjing
Introduction
RWA (Real-World Assets on Chain) is rapidly becoming the mainstream narrative in the Web3 world, and stock tokenization is currently one of the most feasible directions.
The reasons are simple:
The underlying assets are mature enough and do not require effort to "prove value";
The technical threshold is relatively controllable, with existing tools for on-chain issuance and mapping;
Regulatory pathways are gradually becoming clearer, especially in Europe and some offshore regions, with real projects already implemented.
However, many people immediately wonder when they hear the word "stocks": Is this a security? Can it be sold to retail investors? Is a license mandatory?
In reality, some projects have found ways to "balance both sides". They can reduce compliance pressure while reaching the retail market, with representative cases being:
Robinhood: The most popular retail securities platform in the United States;
xStocks: Implementing stock token trading in non-EU and non-US regions, tradable on-chain.
As a lawyer focused on Web3 compliance, I have been frequently receiving similar consultations:
How exactly do stock tokenization platforms operate?
Do small and medium-sized teams have a chance to do this?
If we want to do it, where should we start, and how to structure it legally?
This article will focus on answering one question:
If you want to create a stock tokenization platform that retail investors can participate in with controllable compliance pressure, how should you do it?
[The rest of the translation follows the same approach, maintaining the structure and translating all text while preserving any <> tags]Clearly define what your token represents
Avoid crossing the red lines of users, markets, and laws
This market is not saturated, but rather in a period where institutions are interested but cautious, and entrepreneurs are intrigued but hesitant to enter. Stop watching what others are doing. The stock tokenization track is not yet crowded; once giants occupy the space, you'll be left as just a user.
