You can use crypto in Phantom to trade tokens that provide price exposure to public stocks, exchange-traded funds (ETFs), and private companies. These assets are called tokenized equities.

Tokenized equities are blockchain-based tokens issued by third parties. Holding one gives you exposure to an underlying asset’s price movements, but it does not give you ownership of that asset or shareholder rights, such as voting.

Phantom provides access to view, buy, and sell these tokens. Each issuer determines how its tokens are backed, priced, and traded.

Tokenized stocks and PreStocks #

Phantom supports two types of tokenized equities: tokenized stocks and PreStocks. The main difference is the type of asset they reference.

Tokenized stocks provide price exposure to publicly traded US stocks and ETFs, including assets linked to companies such as Nvidia and Apple or indexes such as the S&P 500. In Phantom, these tokens are available from xStocks and Ondo Finance.

PreStocks, also called pre-IPO tokens, provide price exposure to private companies before they potentially go public. Examples include SpaceX, OpenAI, and xAI. The available companies may change over time. These tokens are issued by PreStocks.

You can identify the issuer through the token’s name and symbol:

Availability depends on your region. Tokenized stocks are unavailable in some regions, including the US, UK, France, the Netherlands, and Germany. PreStocks have separate regional restrictions. See Feature availability by region for details.

What you hold in your wallet #

You self-custody tokenized equities in your Phantom wallet, just as you do other tokens. You are responsible for maintaining access to your wallet and private keys.

The underlying assets are held separately. Tokenized stocks are typically backed 1:1 by stocks or ETFs held by an issuer’s licensed custodian, although the exact structure depends on the issuer. PreStocks use special purpose vehicles (SPVs) that hold private company equity.

Some tokenized equities include a permanent delegate, an issuer-controlled permission built into the token’s smart contract. This permission allows the delegate to transfer or burn tokens held in your wallet. When you review a purchase involving this permission, Phantom displays a “Permanent Delegate” notice. Self-custody means you control access to your wallet, but these issuer permissions still apply to the token.

Holding a token does not give you ownership of the underlying shares or equity. Your token is governed by its issuer’s terms:

• xStocks Terms of Service
• Ondo Finance Terms of Service
• PreStocks Terms of Service

You can buy fractional amounts using tokens without a brokerage or bank account. You can also transfer tokens, subject to issuer terms, regional restrictions, and network availability.

Price tracking #

Tokenized stocks #

Tokenized stocks use decentralized oracles and market data feeds to track the prices of public equities. Issuers are responsible for maintaining price alignment, but a token’s market price may differ from the underlying stock or ETF.

Differences can arise from liquidity, spreads, trading conditions, and dividend handling. A token’s price may also differ from the price of one share because of how the issuer structures the token.

PreStocks #

Private companies do not have a continuously traded public share price. PreStocks reference the most recently known valuation using information such as secondary market transactions, funding rounds, and other available data.

As a result, valuations may update less frequently than public stock prices and may not reflect real-time changes in company value. Large token price movements can occur around funding rounds, valuation updates, news, or changes in market sentiment.

According to PreStocks, its tokens are backed 1:1 by SPVs holding private company equity. PreStocks also says arbitrage helps align token prices with the referenced valuations: arbitrageurs may mint and sell tokens when prices are high, or buy and redeem tokens when prices are low.

This process may help maintain alignment, but token prices can differ significantly from prices in other secondary markets and may only loosely reflect the referenced company’s price per share.

Trading availability #

Trading hours depend on the issuer:

Ondo Finance trading may pause between sessions, during corporate actions, or around holidays. Overnight liquidity may be lower. Check Ondo Finance status page for current trading availability.

Trading availability does not guarantee that you can buy or sell at your preferred price. Liquidity depends on the token and market conditions.

Dividends #

Some tokenized stocks reflect dividends, usually without paying cash into your wallet. The issuer determines how this works:

• xStocks may increase your token balance. In a simplified example, a $10 dividend on an underlying share priced at $100 could increase a balance from 1.00 to 1.10 tokens, with each token still tracking about $100.
• Ondo Finance may adjust the underlying exposure represented by each token. In the same simplified example, your balance could remain at 1.00 token while that token represents 1.10 shares worth about $110.

These examples illustrate the different approaches. Review the issuer’s documentation:

• xStocks dividends
• Ondo Finance dividends (look for the FAQ section on the linked page for information on dividends)

PreStocks do not pay dividends.

Risks and issuer responsibilities #

Tokenized equities involve the risk of losing principal. Their value can fluctuate significantly, and investor protections may differ from those available through traditional brokerages.

Before trading, understand the following:

• Price and liquidity risk: Token prices may diverge from underlying asset prices. Limited liquidity can affect your ability to trade, particularly for PreStocks.
• Issuer and custody risk: The issuer or its custodian holds the underlying assets, while you hold the token in your wallet.
• Issuer controls: For legal, security, business, or operational reasons, issuers may freeze, transfer, burn, refund, or migrate tokens.
• Regional restrictions: Your region may restrict purchasing, trading, or receiving tokens.
• Limited rights: Token holders do not receive ownership of the underlying equity or shareholder voting rights. Dividend treatment varies by issuer.

Phantom partners with third-party issuers but does not issue these tokens, control their terms, or guarantee rights, returns, or liquidity. Tokenized equities are not brokerage accounts, and past performance does not indicate future results.

Review the applicable terms and documentation from xStocks, Ondo Finance, or PreStocks before purchasing. Trade only what you are comfortable risking.