oracles
Every story this desk has filed under oracles, most recent first.
A token that tracks a share does not know what that share is worth. Something has to tell it, and that something is a chain of reporting, aggregation and publication with specific, documented failure points.
Coinbase's Stock Tokens Become Loan Collateral on Base
Morpho has opened lending markets that accept five of Coinbase's tokenized US stocks as collateral for USDC loans on Base, according to The Defiant. It is the step that turns a tokenized share from a holding into a balance sheet item.
A stock token trades in an automated pool that has no idea what the share is worth. Everything that keeps the two numbers together, arbitrage, oracles, redemption, depends on a price feed that closes when the exchange does.
What a Tokenized Stock Actually Is, and What You Own When You Hold One
A tokenized stock is almost never the share. It is a claim on someone who holds the share, wrapped in code, and the quality of your position depends entirely on who that someone is.