Tokenized stocks

A tokenized stock on GM Markets is an on-chain token that represents one share of a real stock, backed 1:1 by an actual share held in custody at a regulated broker-dealer. The token tracks the price of the underlying share in real time and absorbs every dividend and corporate action into its on-chain NAV.

Because it lives in your wallet as a standard on-chain token, you can hold it, send it, trade it, lend it, borrow against it, or use it as liquidity across DeFi — alongside the same price exposure you would get from a traditional brokerage account.

Every tokenized share on GM Markets is fully backed by a corresponding share in a segregated customer account at Interactive Brokers or Alpaca Markets. These are regulated broker-dealers whose customer assets are protected under applicable investor-protection schemes, held separately from the broker’s own funds.

Reserves are independently attested by Accountable, a third-party proof-of-reserves provider that reads share balances directly from the broker accounts and publishes the attested figures on-chain in real time. You can verify the live backing ratio for any asset on the Proof of Reserves page.

When the underlying company pays a dividend, the cash is reinvested into additional shares of the underlying, and the on-chain NAV of the token increases to reflect the larger share base per token. You see the dividend value in the token’s price rather than as a separate cash payout.

For stock splits, special distributions, spin-offs, mergers, and other corporate actions, the on-chain NAV is updated to fully reflect the action so that your economic exposure tracks the underlying instrument exactly. Every adjustment is observable on-chain through the token contract.

Trades on GM Markets execute through a Request-For-Quote (RFQ) mechanism, where regulated market-making partners quote a price against the live underlying market and settle back-to-back upon your acceptance. You can configure a slippage tolerance in the trade sheet (default 0.5%) to control the maximum drift between quote and fill.

Orders placed outside the underlying market’s regular hours are queued on-chain and execute automatically as soon as liquidity becomes available or when the market opens. For assets that trade 24/7, such as cryptocurrencies, orders fill immediately at the prevailing RFQ price.

Network gas is abstracted through your smart account — the native-token cost of each transaction is settled in USDC from your balance, so you never need to hold a native chain token or see a gas line on a trade.

Because every tokenized asset is a standard on-chain token in your wallet, it interoperates with the broader DeFi ecosystem the same way any other token does. Common use cases include:

• Lending and borrowing on protocols like Aave and Morpho to earn yield on idle positions
• Margin trading and leverage on decentralized perps protocols
• Providing liquidity on decentralized exchanges such as Uniswap, Curve, and CoW Swap
• Using your equity exposure as collateral while you continue to hold the underlying position

This composability is the central advantage of tokenized stocks over a traditional brokerage account — your equity exposure becomes productive capital across the entire on-chain economy.

If GM Markets discontinues operations, a designated security agent works directly with the custodian to redeem outstanding tokens against the underlying shares for token holders. The redemption path is enforced by the on-chain contract and operates independently of GM Markets’ continued participation.

The underlying shares are at all times held in segregated customer accounts at the regulated brokers, not on GM Markets’ balance sheet. Your economic claim is to those shares, and the security agent has standing authority to act on token holders’ behalf to return their value.