📢 #Gate Square Writing Contest Phase 3# is officially kicks off!
🎮 This round focuses on: Yooldo Games (ESPORTS)
✍️ Share your unique insights and join promotional interactions. To be eligible for any reward, you must also participate in Gate’s Phase 286 Launchpool, CandyDrop, or Alpha activities!
💡 Content creation + airdrop participation = double points. You could be the grand prize winner!
💰Total prize pool: 4,464 $ESPORTS
🏆 First Prize (1 winner): 964 tokens
🥈 Second Prize (5 winners): 400 tokens each
🥉 Third Prize (10 winners): 150 tokens each
🚀 How to participate:
1️⃣ Publish an
Why not consider creating one yourself since Robinhood and xStocks are so popular?
Introduction
RWA (Real World Asset on Chain) is rapidly becoming the mainstream narrative in the Web3 world, and one particularly "down-to-earth" direction—Tokenized Stocks—is currently one of the most feasible directions.
The reason is simple:
However, many people instinctively think of the words "stocks" and wonder: Is this securities? Can it be sold to retail investors? Is a license required?
But in reality, some projects have found a way to "balance both ends." They can reduce compliance pressure while reaching the retail market. A representative example is:
As a lawyer focused on Web3 compliance, I have also started to receive similar inquiries frequently:
This article does not use big words, does not elaborate on concepts, and focuses on answering one question:
How should you create a stock tokenization platform that allows retail participation and has controllable compliance pressure?
Robinhood Model: The Ultimate Productization of Retail Securities Trading
Robinhood is not a traditional on-chain platform, but its operating model is highly inspiring for the design of Web3 products.
Robinhood only serves the US market for two main reasons:
xStocks Model: Token Mapping of Real Stocks + Non-Security Declaration + Retail-Oriented
xStocks is currently one of the few platforms that has turned "stock price mapping" into tokens and offers trading, allowing retail investors to participate while deliberately avoiding the red line of securities recognition.
xStocks explicitly lists the countries or regions to which it does not provide services:
United States (including all U.S. Persons), EU member states, United Kingdom, Canada, Japan, Australia.
The reason is:
These regions have extremely strict regulations on securities issuance. If xStocks are sold locally, they are likely to be classified as illegal securities issuance;
The platform has not obtained licenses or compliance exemptions in these regions, therefore actively circumventing regulation through IP restrictions + KYC restrictions.
Choosing to register the issuing entity in Jersey and Bermuda is also a common strategy to reduce compliance risks.
The essential difference and common insights between these two modes.
The two paths essentially represent two kinds of logic:
Entrepreneurs do not have to take sides; instead, they should learn how to isolate the platform through legal structures, technological paths, and compliance so that it can "go online, grow, and avoid pitfalls."
If you really want to do it, how should it be implemented structurally?
Stock tokenization is not as simple as copying a contract; you need to at least design the following roles and divisions of labor:
The key is:
Which institutions need to be coordinated with, and which agreements need to be signed?
Stock tokenization is not an isolated system and must rely on the following resources for interaction:
A few points you might not be aware of but must consider.
Once these points are hit, what you face is not community FUD, but the real action of regulation:
Whether you can do it or not depends not on the license, but on the structure.
Stock tokenization is a viable project direction that requires careful design. It is neither as "unregulated" as NFTs nor as "rule-bound" as traditional securities. What you need to do is not to break out aggressively, but to:
This market is not saturated; instead, it is in a gap where institutions are cautious but interested, and entrepreneurs are interested but dare not enter. Stop looking at what others are doing. The track of stock tokenization is not crowded yet; once it is truly occupied by giants, you will only be able to act as a user.
As a Web3 compliance lawyer, I would prefer to help you design a platform that is "regulatory compliant, user-friendly, and technologically feasible." It's not about achieving everything at once, but ensuring we start off on the right foot.