Investing in tokenized securities and its impact on return and risk – an analytical study in global markets with potential application in Iraq

Abstract

This research aimed to analyze and compare the returns and risks of tokenized and traditional stocks, exploring the potential for future application in Iraqi financial markets to improve investment opportunities, enhance liquidity, and generate returns within a regulatory framework. To achieve this objective, American companies were selected as the research population, representing the most suitable area for research on tokenized stocks due to their extensive trading in these securities. The sample consisted of ten companies dealing in both tokenized and traditional stocks. The returns and risks of these companies were then analyzed using a range of statistical measures based on daily data for November 2025. The research concluded that all real, financial, and legal assets can be tokenized using blockchain technology and traded on specialized digital platforms using distributed ledgers and smart contracts. The most prominent recommendation was the need to develop legal and regulatory frameworks for dealing in tokenized assets to ensure the highest levels of transparency and disclosure, and to protect investors from financial fraud.