24/7 liquidity and near instant settlement, easier access for international investors, and ability to plug token into other apps and products onchain like Aave lending, providing liquidity, etc.
There are also memecoins which as they rise, buy the underlying stock.
Being totally naive and asking an honest question: who or are they protecting themselves from? These instruments in reality are at most paired assets but most times have nothing to do with the real stock.
No, they are not. You can trade a tokenized stock on top of a blockchain that happens to be permissionless, but you can also fully operate a permissioned protocol on top of a permissionless network. How many permissioned products run on top of TCP/IP (a permissionless protocol)?
Smart contracts enable any sort of logic that you can encode in a Turing-complete software language, including authorization controls, or awaiting offchain KYC checks, or whatever your heart desires.
Memecoins don't have anything to do with real stock, but tokenized stocks trend towards the underlying's price as long as they are redeemable for the underlying in a timely manner.
Isnt this offset by large taxes when you have to convert your coin back to real currency?