Tokenised stocks bridge gap between crypto and traditional finance

Crypto has taken another bold step toward mainstream investing with the launch of tokenised stocks on Luno. This new feature, unveiled last month, gives South Africans the ability to buy the crypto versions of well-known US blue-chip shares directly from the Luno app, using rand.

Christo de Wit, Country Manager for Luno South Africa, says the innovation opens the door for more people to participate in global markets without the complexity and cost of traditional offshore investing.

“We have 61 tokenised stocks available on Luno,” says De Wit. “These are crypto versions of US shares, backed one-to-one by the real assets, and pegged to their value, much like stablecoins are pegged to fiat currency. Whatever happens on the stock exchange, the token tracks that price.”

Lowering barriers to global markets

The appeal lies in accessibility. In the traditional route, South Africans wanting to buy US shares must use a broker, complete a foreign exchange conversion, and often dip into their discretionary allowance. Tokenised stocks bypass those hurdles because they’re traded on the blockchain and classified as crypto assets. Investors can start with as little as R20, making it possible to experiment, learn, and gradually build a portfolio that blends digital assets with traditional market exposure.

The tokenised stocks are simple and easy to access on the Luno app, taking the buyer on a journey similar to what they would follow if they were buying traditional crypto. Rands are loaded into the user’s wallet, and can then be used to invest in the large range of stocks on the platform. “The significant thing is that you use rand and because this purchase sits on the blockchain, at the moment it is seen as a crypto asset and not subject to your discretionary allowance.“

This is about democratising investing,” says De Wit. “For some, it’s an entry point into crypto via something they already understand – stocks. For others, it’s a chance to diversify within a single platform, without high capital requirements or red tape.” Stock investing has always been seen as a vehicle for the more affluent,” he explains. “This bridges that gap. It makes it accessible to more people.”

Implications for financial advisers

While many financial advisers still see cryptocurrency as something to be wary of, this may be a gamechanger for them. “I think a lot of clarity is still needed. Financial advisers still need to fully understand the space and any risks.” De Wit believes the tokenised stocks also present independent financial advisers the opportunity to create their own investment bundles.

“They could start bundling stocks and crypto. I think it’s important that financial advisers pay attention to the changes underway, because there is a school of thought that eventually everything is going to be tokenised in one way or another.” He says that Luno is participating in an FSCA initiative to develop a Financial Education Charter, aiming to enhance cryptocurrency literacy among South Africans.

Protecting against scams

New data revealed by Luno shows that while crypto-related scams affect less than 1% of their 14 million customers, scams and fraudulent misrepresentation remain the most prevalent forms of fraud in digital currency. The company handled 516 scam-related customer queries over the past three months of this year. “When you look at the numbers in the context of 14 million customers, it is very few cases.”

He explains that when it comes to the new tokenised stocks, Luno has applied the same stringent safeguards it uses for all its crypto assets. “We’ve done the same level of penetration testing, and these stocks will be included in our proof of reserves, so customers know they’re backed by real-world shares. We only work with trusted liquidity providers we’ve used for years. We’ll never compromise on security because trust takes years to build, but only a day to lose.”

The importance of regulation

For many advisers and investors, the regulatory environment will be as important as the technology itself. While developments in the US such as the Genius Act and the Securities and Exchange Commission’s shifting stance on crypto make global headlines, South Africa’s approach is influenced more by the UK and Europe.

De Wit points out that local regulators moved quickly on crypto rules partly due to the country’s greylisting, but that adoption patterns here may be slower than in the US. “Whatever happens in the US tends to ripple across the world,” he says. “But in reality, our government looks more to the UK and Europe for guidance, and they’ve taken a far less progressive approach. That said, increased US regulation could still inspire our regulators over time.”

As for market reception, De Wit is optimistic. Early reactions from the press and potential investors have been positive, with many seeing tokenised stocks as a game changer that could merge digital assets with traditional markets in a meaningful way.

“This gives South Africans access to US stocks without FX conversion or tapping into their discretionary allowance,” he says. “It also sparks ideas for the future – could we see similar products for local companies, private markets, or even tokenised private equity? The conversation around tokenisation has now expanded far beyond stablecoins. It’s opening up a world of opportunity.”

Why this is important for financial advisers

The introduction of tokenised stocks presents both challenges and opportunities for financial advisers. Many advisers remain cautious about cryptocurrency, but tokenisation could transform the investment landscape. Here’s why this development is crucial for advisers:

1. A new product offering
   Tokenised stocks allow advisers to bundle stocks and cryptocurrencies for clients, creating diversified portfolios. This provides clients exposure to digital assets while maintaining familiarity with traditional investments.
2. Keeping pace with the industry
   Tokenisation is reshaping global finance, and it’s crucial for advisers to stay educated about emerging products. As De Wit suggests, “There’s a school of thought that everything could eventually be tokenised. Advisers must adapt to these shifts.”
3. Client education and opportunities
   Advisers have a unique opportunity to educate clients about this innovation, helping them enter global markets without significant capital, FX conversion, or complex hurdles. With low barriers to entry, tokenised stocks are accessible to a broader audience than traditional investments.