Tokenized stock glossary
Tokenized stocks borrow words from both stock markets and crypto, and a few of them mean something specific on our pages. A premium is how far a token trades above its share, a multiplier sets how much of a share one token represents, and a lookalike is a token that copies a real ticker without being on any issuer list. The full set is below.
Each definition matches how we calculate things in our methodology.
What is a tokenized stock?
A token on a blockchain that tracks the price of a listed share, issued under an issuer's legal terms. Robinhood Assets (Jersey) Limited (Robinhood Stock Tokens), Ondo Global Markets and Backed (xStocks) are three issuers.
What a holder legally owns depends on those terms. Robinhood Stock Tokens aren't available to U.S. persons.
Premium
The amount a token's per-share price sits above the reference share price, in basis points. Premium equals the token's per-share price divided by the reference share price, minus one.
Discount
A negative premium. The token trades below the reference share price.
Basis point (bps)
One hundredth of a percent. 100 bps is 1%, so a 25 bps premium is a quarter of a percent.
Reference price
The share price we compare against: the live exchange price in market hours, and when the market is shut, a Chainlink round under two hours old, else the issuer book, else the dated last close.
Multiplier
A number that sets how much of one share a single token represents. Ondo applies a multiplier that rises as dividends are reinvested (docs.ondo.finance, read 2 Nov 2026). We divide by it before comparing prices.
Tracker certificate
A debt-style instrument that pays out according to the price of an underlying asset. Secondary sources describe xStocks, issued by Backed, as tracker certificates; Backed's base prospectus is the place to confirm the structure (mexc, read 2 Nov 2026).
Issuer list
The issuer's own published list of its token addresses per chain. It's the only source that settles whether a token is the issuer's.
Lookalike
A token whose name or ticker matches a real stock token while its address matches no issuer list. See lookalikes.
Proxy contract
A contract that forwards calls to logic the issuer can upgrade. Common for issued tokens, and it means the issuer can change how the token behaves.
Synthetic token
A token that tracks a price through a derivative or other contract, with no share held behind it.
NAV (net asset value)
The value of what stands behind a token, per token. For a stock token, roughly the share price times the multiplier. We use the reference price and the multiplier for the same job.
Redemption path
A way to swap a token back with its issuer for the share or its cash value. A working redemption path is what lets arbitrage close a premium. Lookalikes have none.
Stock-paired memecoin
A memecoin named after a stock and paired with the real stock token in a pool. The pairing makes it look official. It isn't on any issuer list.
Weekend gap
The jump in a token's price at the next market open after a weekend or holiday. See weekend gaps.
FAQ
What is a premium on a tokenized stock?
The amount a token's per-share price sits above the reference share price, in basis points.
What is a multiplier on a stock token?
A number that sets how much of one share a single token represents. We divide by it before comparing prices.
What is a lookalike token?
A token whose name or ticker matches a real stock token while its address matches no issuer list.
How we check: every term here maps to a step in our calculation. Full method at /methodology.