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fine print, to make sure you understand what you actually own.10 stocks we like better than Robinhood Markets ›Tokenization has been one of the hottest buzzwords in the crypto industry for the past 12 months. Now we're finally starting to see what can happen when blockchain technology meets traditional stock market investing.On June 30, Robinhood Markets (NASDAQ: HOOD) shook up the financial world with the launch of tokenized stocks for retail investors. According to Robinhood Chief Executive Officer Vlad Tenev, these tokenized stocks represent the greatest innovation in capital markets in decades. But what, exactly, are they? And what do they mean for investors?Tokenization refers to the transformation of real-world assets into digital assets that live on the blockchain. Ownership in that asset is represented by a digital token that can be traded just like any crypto token.In this case, the real-world assets being transformed are stocks, and the place to trade them is on Robinhood's trading platform. For now, trading in these tokenized stocks will take place 24/5, but according to Robinhood, trading will soon be 24/7.Image source: Getty Images.It can be helpful to think of these tokenized stocks as digital twins. Robinhood buys a real-world stock, and then, with a little blockchain alchemy, transforms that into a digital token. In theory, this digital token will then mimic the price action of the real-world stock on a 1:1 basis. If the value of Company X goes up by 10% in one day, then the value of your token will go up by 10% as well.Tokenization provides a number of advantages for retail investors. For one, investors get the enhanced liquidity of being able to trade these tokens on the blockchain. Second, they get access to the speed, efficiency, security, and transparency of blockchain technology. Third, they can trade tiny fractional shares of any company's stock that has been tokenized.According to Robinhood, tokenized stocks will modernize the traditional system of buying and selling stocks. If you've ever been frustrated by not being able to trade equities on the weekend or on holidays, then tokenized stocks represent a possible solution. In addition, once you have the token, you can then do different things with it that simply aren't possible in the world of traditional finance, all thanks to the power of decentralized finance.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,332.29 +35.50 (+0.56%)Dow 3044,558.47 +216.28 (+0.49%)Nasdaq21,049.81 +154.15 (+0.74%)Russell 20002,246.24 +6.23 (+0.28%)VIX16.38 -0.03 (-0.18%)Gold3,407.60 +49.30 (+1.47%)PortfolioSign in to access your portfolioSign inTop gainersSTEM Stem, Inc. 17.50 +4.00 (+29.57%)ALAB Astera Labs, Inc. 123.57 +21.44 (+21.00%)CLF Cleveland-Cliffs Inc. 10.75 +1.27 (+13.34%)RXRX Recursion Pharmaceuticals, Inc. 6.60 +0.75 (+12.93%)IREN IREN Limited 19.75 +1.81 (+10.06%)Top losersQS QuantumScape Corporation 12.80 -1.84 (-12.57%)BRKR Bruker Corporation 35.88 -4.67 (-11.53%)NEGG Newegg Commerce, Inc. 26.67 -2.88 (-9.76%)DAVE Dave Inc. 198.63 -19.47 (-8.93%)AR Antero Resources Corporation 33.04 -3.28 (-9.02%)Most activeOPEN Opendoor Technologies Inc. 4.8388 +2.5888 (+115.47%)LCID Lucid Group, Inc. 2.8100 -0.2300 (-7.57%)QS QuantumScape Corporation 12.80 -1.84 (-12.57%)RIOT Riot Platforms, Inc. 14.56 +0.70 (+5.04%)NVDA NVIDIA Corporation 172.56 +0.15 (+0.09%)Earnings eventsTrending tickersOPEN Opendoor Technologies Inc. 4.8959 +2.6459 (+117.60%)VZ Verizon Communications Inc. 42.84 +1.99 (+4.88%)DJT Trump Media & Technology Group Corp. 19.53 +0.86 (+4.61%)NVTS Navitas Semiconductor Corporation 8.71 +1.92 (+28.31%)XYZ Block, Inc. 78.71 +5.89 (+8.09%)Top economic events