> ## Documentation Index > Fetch the complete documentation index at: https://docs.arcus.xyz/llms.txt > Use this file to discover all available pages before exploring further. # Stock Tokens > What Stock Tokens are on Arcus — self-custodied, on-chain tokenized equities traded spot with zero fees, 24/7, and how spot differs from perps **Stock Tokens** are on-chain, tokenized representations of equities that you own outright and trade **spot** — no leverage, no [funding](/concepts/perpetuals/funding), no [liquidations](/concepts/perpetuals/liquidations). Spot trading is **free at launch** and runs **24/7**. This is distinct from [perps](/concepts/perpetuals/overview), where you take leveraged exposure against margin rather than holding the asset. This page is conceptual. For how spot trades are priced and settled, see [Spot RFQ](/concepts/spot-rfq); for how long-tail names are represented, see [Wrapped tokens](/concepts/wrapped-tokens). ## Self-custody Spot is **non-custodial**: your Stock Tokens live in your own wallet, and trades settle directly on-chain between wallets. Arcus never holds your funds or keys. Because you sign for what you own, trading a Stock Token from a self-custodial wallet prompts you to **sign each trade**, plus a **one-time authorization** the first time you interact with a given token. ## How Arcus sources liquidity Arcus does not run a spot order book of its own. It acts as a **router**: for each trade it sources liquidity from the venues available for that token and executes against the best-priced option, always settling on-chain and non-custodially to your wallet. Two kinds of venue feed the router: * **On-chain AMM liquidity.** Automated market-maker pools that hold the tokenized asset on-chain. The router trades into a pool when it offers the best price. More on-chain venues are being added over time. * **The Arcus RFQ network.** A [request-for-quote (RFQ)](/concepts/spot-rfq) service where professional makers who have integrated with Arcus return firm, signed quotes on demand. The best quotes settle atomically alongside your signed intent. For a given order the router may draw on either source — whichever gives you the better execution. ## How trading and delivery work Whichever venue fills your order, the result settles atomically in a single on-chain transaction — slippage-bounded and non-custodial. What you actually receive depends on liquidity in the underlying token: * **Real token (preferred).** When a native fill against the tokenized equity is available, you receive the real token directly. * **Wrapped placeholder (fallback).** For long-tail names where no native fill is available, a whitelisted maker mints a [wrapped token](/concepts/wrapped-tokens) (e.g. `wTSLA`) that behaves like the underlying in your account and is automatically settled to the real token on the maker's cadence — no action needed from you. Either way you hold spot exposure to the equity. A wrapped token is a **delivery mechanism for a Stock Token**, not a separate product. ## Backing and custody Stock Tokens are issued by **Bitstamp** — minted by Bitstamp Global Ltd. (BVI), a custodial virtual-asset and securities exchange holding VASP/CASP, MiFID, and other licenses. Arcus is the trading venue, not the issuer. Each Stock Token is backed by the issuer's reserves of the underlying equity — real shares held in regulated custody — or cash and equivalents when the underlying is on loan. The issuer's reserves are intended to be publicly attestable, and wrapped-token supply and escrow balances are verifiable on-chain in real time. Holding a Stock Token gives you a **contractual right to redeem with the issuer for the cash market value** of the linked security — not the share certificate itself. Economic exposure passes through, but not every shareholder right: * **Dividends** are not paid out directly; their value is reinvested into the underlying backing the token, and your displayed balance adjusts via an on-chain oracle update — no action needed. * **Stock splits** work the same way: an oracle update adjusts every holder's displayed balance. * **Voting rights** are not passed through. The tokens themselves are yours to hold, transfer, or trade — see the [disclaimer](/concepts/disclaimer) for the risk profile relative to traditional stock ownership, and the [Help Center](https://help.arcus.xyz) for the full Stock Token FAQ. ## Spot vs. perps | | Stock Tokens (spot) | Perpetuals | | - | - | - | | What you hold | The tokenized asset, in your wallet | A leveraged position against margin | | Leverage | None | Up to 50x | | Funding / liquidations | None | Yes | | Custody | Self-custodied on-chain | Collateral in on-chain settlement contracts | | Fees | Free at launch | Maker/taker [fee tiers](/concepts/perpetuals/fees) | ## Control and limits Arcus is non-custodial and cannot move or seize the Stock Tokens you self-custody. Two narrow, network-level exceptions exist: transfers to sanctioned addresses are blocked by compliance controls, and a [wrapped](/concepts/wrapped-tokens) placeholder can be force-settled to its real token (which only ever delivers what you are owed). ## Learn more How spot trades are quoted and settled atomically. How long-tail equities are represented until settled. This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.