Tokenised stocks transform how people in international markets interact with traditional finance. Blockchain technology allows you to explore these digital tokens outside the constraints of conventional stock market structures. Learn how you can gain exposure to a company’s underlying price movements using blockchain infrastructure outside the US with platforms like Crypto.com.
Microsoft (MSFT) tokenised stock is a specific type of digital asset – tokenised share securities of the company Microsoft Corporation. Tokenised stocks represent public company shares that are issued or recorded on a blockchain network. The important thing to remember is that they still keep the legal status of a security.
Users who gain price exposure to the underlying stocks don’t hold that share’s certificate; they instead own a digital representation of that stock. This innovation bridges traditional finance (TradFi) with the modern digital asset ecosystem.
Tokenised stocks exist in a couple different forms:
For asset-backed tokenised stocks, a qualified custodian or regulated financial institution holds the underlying physical shares in a secure account at a 1:1 ratio against the circulating token supply.
Tokenisation models vary by issuer, such as taking place directly by or on behalf of the public company issuer. On the other hand, third-party platforms that are completely unaffiliated with the public company can also create tokenised stocks.
Understanding the underlying mechanics is essential when you’re interested in buying Microsoft (MSFT) tokenised stock.
Licenced custodians acquire and hold the real-world Microsoft stocks, issuing corresponding tokens to ensure proper 1:1 backing.
Smart contracts then automate compliance rules by verifying user identity credentials, checking wallet whitelists and enforcing regional transfer restrictions directly on-chain. These also handle corporate actions, such as a Microsoft stock split, and automatically adjust token supply or metrics so the economic exposure remains unchanged.
When an underlying stock splits, the smart contract automatically updates the value multiplier or rebases the tokens. Rebasing is an algorithmic mechanism where the total circulating supply of a token is periodically adjusted by its smart contract.
For example, if Microsoft stock undergoes a 10-for-1 split, the smart contract will automatically multiply the holder’s tokens by 10. The economic exposure stays the same, but the effective token balance increases to reflect the new share volume.
Another important aspect to consider with tokenised Microsoft stocks are dividends. Platforms tend to handle this differently. For example, Crypto.com offers a cash payout; however, others might pass a cash equivalent credit or reinvest the dividend value, net of any applicable withholding taxes.
Take a look at our tokenised stock guide
Trading Microsoft (MSFT) tokenised stock protocols comes with a few advantages, focusing on efficiency, availability and settlement times.
While tokenised assets track the price of the stock, their underlying rights are different from holding traditional shares.
For example, tokens issued by third-party platforms generally don’t confer standard shareholder voting rights or proxy participation to the asset holder. For cash flows, certain asset-backed tokenised stock holders are eligible to receive dividends distributed directly on-chain in the form of stablecoins like USDC. Conversely, synthetic tokens typically don’t distribute dividends at all.
Feature | Tokenised MSFT asset | Traditional MSFT shares |
Trading hours | Expanded 24/5 or 24/7 availability | Restricted to standard stock exchange hours |
Shareholder rights | Non-binding advisory preferences or no direct proxy voting rights | Direct corporate voting rights and proxy access |
Custody mechanics | Held in digital wallets or digital asset platforms | Held in standard traditional brokerage accounts |
Settlement cycle | Near-instant settlement on the blockchain ledger | Standard T+1 and T+2 business-day clearing cycle |
Before you gain price exposure to the underlying Microsoft stocks, it’s important to account for the drawbacks and risks associated with trading them.
As with any digital asset, past performance does not guarantee future results, so make sure to research Microsoft Tokenised stocks before getting involved.
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All investments involve risk, and not all risks are suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. Past performance does not guarantee future results.
