WHAT HAPPENS WHEN STOCKS BECOME PROGRAMMABLE?

Summary from the TLDR Crypto newsletter

Tokenized stocks like xStocks operate as fully collateralized tracker certificates rather than direct equity, giving holders price exposure without shareholder voting rights. The price peg relies on authorized institutions arbitraging between underlying shares and tokens. On weekends when stock markets are closed, hedging constraints cause spreads to widen. Onchain equities unlock DeFi composability: existing lending protocols like Kamino accept selected xStocks as USDC borrowing collateral, and stock tokens can settle atomically against stablecoins in a single transaction. Developers can reuse existing wallet infrastructure and smart contracts to build thematic indices, structured products, and cross-protocol collateral tools on top of these assets.