Tokenised stocks are designed to be fully collateralised on a 1:1 basis by the corresponding publicly traded equities.
For every stock token issued, the issuer acquires and holds an equivalent share of the referenced stock with a regulated, independent custodian. These shares are held on behalf of the Issuer or its designated trustee, ensuring each token is economically linked to one real-world share.
Based on the number of custodied shares, the issuer mints an equivalent number of stock tokens, which are then made available for trading through Altify.
Underlying stocks are held off-chain at regulated financial institutions (e.g., InCore, Alpaca Securities LLC, Maerki Baumann) in segregated accounts, designated for token holders. Altify itself does not hold the actual stocks.
How does Altify ensure tokenised stocks are backed 1:1 with the underlying stocks?
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