# Tokenized stocks

> Which tokenized stocks the Tango app offers, how strategies price them, their risks, and why they can delay deposits and withdrawals by 2+ days.

Source: https://docs.tango.fun/app/tokenized-stocks

A tokenized stock is a token, issued by a third party, that is designed to follow the price of a share. Strategies in the Tango app can hold them. Their prices only update while US stock markets are open. After markets close, a strategy that holds them can stop settling deposits and withdrawals until markets reopen. It is worth understanding them before you create or back one.

> **Key points**
>
> - Strategies on Base can hold tokenized US stocks, and strategies on Ethereum can hold tokenized ETFs. These are third-party tokens that follow a share price. They are not the shares themselves.
> - Strategies value them with price feeds that update during US market hours. Outside those hours the prices go stale, and a strategy holding any of them cannot settle deposits or withdrawals until markets reopen.
> - Because of this, settlement can take 2+ days over weekends and holidays.

## Which stocks are available?

| Network | Tokens | Issuer |
| --- | --- | --- |
| Base | AAPL, AMZN, GOOGL, META, MSFT, MSTR, NVDA, SNDK, SPCX and TSLA, as Coinbase tokenized equities (for example NVDAc) | Coinbase |
| Ethereum | SPY and QQQ, as Ondo tokenized ETFs (SPYon, QQQon) | Ondo |

A strategy can trade tokenized stocks, but it cannot lend them.

## How are they priced?

Each tokenized stock is a [registered asset](https://docs.tango.fun/vaults/tracked-sub-accounts.md#the-asset-registry), one of the assets the strategy's vault counts and prices. An **oracle adapter**, a contract that supplies the vault with a price, values each one:

- **Base:** the adapter reads a Chainlink price feed for the stock, plus the issuer's onchain registry. It checks the registry every time it values the stock, so it catches a paused token or a corporate action (such as a split multiplier) straight away.
- **Ethereum:** the adapter reads a Chainlink price feed for the ETF.

The Base feeds update during US equity trading hours. Overnight, at weekends, on market holidays and during corporate-action pauses, they hold their last value. Each Base feed has a 24-hour **heartbeat**, the longest a price can go without an update before it counts as stale. So a held stock's price reads as stale within a day of the market closing, or immediately during a pause. The Ethereum ETF feeds keep updating within their heartbeat through weekends.

The strategy values each stock at its feed price, not at the price the token trades for onchain. The two can differ, especially outside market hours.

## How do stocks affect deposits and withdrawals?

```text
US market open: stock feeds update, the strategy's NAV is fresh, deposits and withdrawals can settle
Market closes: feeds hold their last value
Within about a day: a held stock's price passes its heartbeat and reads as stale
Strategy NAV stale: settlement, forced exits and swaps pause for the whole strategy
Requests and cancellations still work while settlement is paused
Market reopens: feeds update, NAV is fresh again, settlement resumes
```

A strategy's **NAV** (net asset value) is the total value of everything it holds. If any stock the strategy holds has a stale price, the whole NAV is stale (see [When NAV is stale](https://docs.tango.fun/vaults/sub-accounts.md#when-nav-is-stale)). Until prices are fresh again:

- deposits and withdrawals cannot be settled, and the app turns off Deposit;
- forced exits, where a backer settles their own overdue withdrawal, cannot run;
- swaps in the strategy pause, because the vault checks every trade against oracle prices.

You can still request a withdrawal or cancel a request. Prices do not go stale the moment markets close, so settlement can continue for a while afterwards. Over weekends and holidays, deposits and withdrawals can take **2+ days** to settle.

When held stocks are the only stale prices, the app shows **Settlement paused until US stock markets reopen**. Otherwise it shows **Settlement paused while this strategy's pricing is out of date**. The app treats a strategy as one that can hold stocks when a tokenized stock is among its registered assets, even if it holds none right now.

Creators can only add stocks at setup while their prices are fresh.

## Risks

- A tokenized stock is not the stock itself. A third party issues each one and designs it to follow a share price. Holding one does not make you a shareholder. It gives you no voting rights or dividends unless the issuer's terms say so.
- Each issuer decides the token's backing, rights and redemption terms. Issuers can approve or restrict which addresses may hold or move their tokens. A restriction could leave a position unable to move.
- The tokens trade onchain at any hour, but there is less liquidity when US markets are closed. Swaps can cost more, and prices can jump when markets open.
- Feeds lag behind the market because they update in steps. Valuations and settlement use the last update, not the live market price.
- Tokenized stocks may not be available everywhere or to everyone. Whether you can hold them depends on the laws that apply to you.

Tango does not issue these tokens, does not hold them for you, and does not stand behind their issuers' claims.

## Not the same as stock perps

Perps on stocks, indices, commodities and FX are a different instrument. A perp is a contract on the price, not the asset itself. These trade on Hyperliquid's xyz exchange and sit in the strategy's Hyperliquid account. The exchange prices them around the clock, so they do not pause settlement at weekends. See [Perps on Hyperliquid](https://docs.tango.fun/app/venues/hyperliquid.md).