As the wave of digitization sweeps across the financial industry, a new concept—stock NFTization—is gradually entering the spotlight. It refers to the process of turning shares or equity rights into NFTs (non-fungible tokens), allowing ownership, circulation, and record-keeping to happen on the blockchain. Compared to traditional stocks, NFTs are tamper-proof, programmable, and transferable globally. This not only removes geographical and intermediary barriers but also redefines what it means to "own a share."
Although traditional stocks are already digitized, they are still ultimately managed by centralized institutions. Investors don’t directly control the underlying asset. By contrast, NFTs offer a new model—allowing users to hold stock NFTs directly in their blockchain wallets, with full autonomy over transfers, governance rights, and more. More importantly, NFTs can carry more than just value—they can include shareholder identity, voting rights, dividend history, and governance records, making equity more dynamic and intelligent in the digital world.
Stock NFTization lowers the entry barrier for investing, enabling people to engage in early-stage company growth more flexibly. For example, startups can issue fractionalized NFT shares, allowing everyday users to purchase a small portion of equity at low cost, and even trade it freely in decentralized markets. This breaks down the traditional private equity wall that was once exclusive to institutional investors—giving everyone the chance to become an "angel investor."
For companies, issuing NFT-based equity can streamline fundraising, strengthen community engagement, and automate corporate governance. Dividends and voting can be managed via smart contracts, increasing transparency and efficiency. NFT shares also allow businesses to expand their shareholder base globally without the usual legal and logistical burdens. On-chain tracking of ownership changes offers companies unprecedented control and visibility over their equity structure.
Despite its promise, stock NFTization faces regulatory and legal hurdles. Many countries impose strict rules on securities issuance, and once NFTs are tied to real equity rights, they may fall under securities laws. For now, most projects focus on representing "rights tokens" or are limited to private, unlisted companies to avoid regulatory conflict. Meanwhile, concerns around wallet security, asset stability, and user trust still need to be addressed.
Stock NFTization isn’t about replacing traditional stock markets—it’s an innovative attempt to rethink what asset ownership means in the Web3 era. It bridges the value of real-world equity with the decentralized infrastructure of digital networks, opening new possibilities for the future of finance. As technology, regulation, and user adoption mature, this model could fundamentally reshape how we invest, hold shares, and understand corporate ownership. The on-chain equity era may have already begun—quietly, but irreversibly.
The Metaverse Finance Association is a global organization dedicated to promoting the development and standardization of the metaverse finance industry.
