“Buy Tesla” can mean three completely different things on a crypto exchange. The button looks the same; what lands in your account does not. Before you deposit a cent, it is worth knowing which of these you are actually getting, because each one changes your rights, your risk and how you are taxed.
The asset is legally yours, with shareholder rights.
You hold a token backed by a share in custody.
A leveraged bet on price. You own nothing.
1. Real shares
A real share is the genuine article: equity in the company, typically held for you by a regulated broker or custodian. You get economic exposure plus the legal rights that come with ownership — dividends paid in cash, voting rights, and protection under investor-compensation schemes in many jurisdictions. This is the benchmark every other product is measured against.
2. Tokenized stocks
A tokenized stock is a blockchain token that represents a real share held by a custodian. Kraken's xStocks — issued by Backed Finance and trading under tickers like TSLAX, NVDAX and AAPLX — are backed 1:1 by the underlying equity; Binance bStocks are BEP-20 certificates backed 1:1 under ADGM. The appeal is 24/7 settlement, fractional sizes and on-chain composability. The trade-off is that you depend on the issuer and its custodian: your token is only as good as their backing, their solvency, and their willingness to honour redemptions. Legally these tokens are not shares, so voting and dividend rights are limited — issuers typically reflect corporate actions in the token rather than passing through full shareholder rights.
3. CFDs and perps
CFDs (contracts for difference) and perpetual futures are derivatives. You are not buying a stock at all — you are taking a leveraged position on its price. There is no share, no voting, no dividend (only a cash adjustment), and you pay financing or funding fees to hold the position. Leverage cuts both ways and you can lose more than you put in. In some places, including the United States, stock CFDs are not available to retail traders.
Side by side
| Real share | Tokenized stock | CFD / Perp | |
|---|---|---|---|
| What you own | The equity itself | A token backed by a share | A contract — nothing |
| Shareholder rights | Yes | Limited / none | None |
| Dividends | Yes, in cash | Sometimes reflected | Cash adjustment only |
| Leverage | No (unless margin) | Usually no | Yes — core feature |
| Key risk | Market risk | Issuer & custody risk | Leverage & counterparty risk |
| Typical venue | Regulated broker, Binance Stocks | Kraken & Bybit xStocks, Binance bStocks, Ondo | Bybit TradFi, Hyperliquid |