What is Coca-Cola Tokenized Stock (xStock)?

Tokenization of stocks is essentially a digital mirror of traditional publicly listed company equity in the blockchain world. Through a 1:1 asset anchoring mechanism, each token corresponds to the real stocks held by the custodian.

Taking Coca-Cola tokenized stock as an example, when users purchase "KOX" tokens, what actually happens is that the platform partner Dinari (a U.S. SEC registered transfer agent) will buy an equivalent amount of Coca-Cola stock in the traditional securities market and act as an accomplice.

The economic rights of these stocks are digitally expressed on the blockchain through dShares™ tokens. Token holders enjoy all economic rights corresponding to the stocks, including potential dividend earnings.

Blockchain technology ensures the transparency and auditability of this process. Every token transaction leaves an immutable record on the chain, eliminating the settlement risks and operational opacity that may arise in traditional securities transactions.

Market Reaction and Latest Data

The tokenization of the stock market is experiencing explosive growth. On July 17, the stock tokenization platform xStocks created by Backed delivered impressive results.

The platform's daily trading volume reached 14,634 transactions, with a total trading amount exceeding 5.44 million USD, and daily active users reached 1,139. In terms of trading varieties, Circle topped the list with a trading volume of 2.77 million USD, followed closely by tokenization of Tesla with 986,000 USD.

Although Coca-Cola's tokenized stocks have not yet appeared at the top of the trading rankings, as part of the latest batch of consumer giant tokens launched, their trading activity is expected to rise rapidly. This data confirms the strong demand in the market for a 7×24 hour trading model.

##Why choose Coca-Cola?

Among many listed companies, Coca-Cola becoming one of the first traditional enterprises to be tokenized is no coincidence. As an iconic company in the consumer industry, Coca-Cola has extremely high global brand recognition and market awareness.

Stocks of these consumption giants usually have strong market stability, which can attract traditional investors to try blockchain trading. For European retail investors, direct investment in high-priced US stocks may have a financial threshold, while the fractional investment characteristics brought by tokenization solve this pain point.

Apart from Coca-Cola, stocks of well-known brands such as Nike, McDonald's, Starbucks, and Yum Brands have been tokenized. These companies share common characteristics: clear business models, stable cash flow, and a broad consumer base worldwide.

Advantages and Risks of Tokenized Stocks

The core advantage of tokenization of stocks lies in its ability to break the time and space limitations of traditional financial markets. Investors can enjoy a 7×24 hours trading experience, no longer restricted by the specific trading hours of the New York Stock Exchange.

Fragmented trading significantly lowers the investment threshold, allowing small amounts of capital to participate in high-priced stock investments. At the same time, Blockchain technology brings near-instant settlement speed, greatly improving capital utilization efficiency.

However, the risks cannot be ignored. The platform's credit risk is the most pressing— the 2022 FTX bankruptcy event led to the complete termination of its tokenization stock business, resulting in significant losses for investors. There are also technical risks, including smart contract vulnerabilities and network attacks that could lead to the impairment of investors' assets.

Regulatory uncertainty is also a potential challenge. Although some trading substitutes operate in compliance with MiFID II licenses in the EU, the global regulatory framework has yet to be unified. Investors need to closely monitor policy changes to guard against regulatory risks.

##Industry Outlook and Competitive Landscape

The tokenized stock market is attracting more and more heavyweight players. In addition to Gemini and xStocks, Robinhood has recently launched a 24/5 trading service for tokenized U.S. stocks.

Traditional financial institutions are also unwilling to lag behind. Nasdaq has partnered with R3 to develop an asset management platform based on the Corda Blockchain, exploring the application of blockchain in the field of securities settlement and clearing. This trend indicates that tokenized securities are becoming the intersection of traditional finance and the crypto world.

With the implementation of the EU MiCA (Regulation on Markets in Crypto-Assets), the tokenization securities market is expected to usher in a more regulated environment. Compliance will become a key watershed in the next stage of competition.

##Future Outlook

European investors can now own fractional shares of Coca-Cola, Nike, or McDonald's with just one crypto wallet. The xStocks platform recorded a daily trading volume of $5.44 million yesterday, with each active user completing nearly 13 transactions on average.

Traditional brokers have not yet opened their doors, but equity trading on the blockchain has already gone through several rounds of ups and downs. The future of finance is rapidly taking shape at the intersection of two systems—when the closing bell rings at the New York Stock Exchange, Coca-Cola stock trading on the Arbitrum chain continues to pulse.