Read this before anything else

This is not tax advice. Check with a tax professional before you file. It is a table of what the IRS, the tax code, the SEC and each token’s issuer say in their own words, with the words beside every answer, so you can read the source yourself.

20 answers: 7 a source says outright, 8 are our reading and say “likely”, and 5 are UNKNOWN. Counted from the table below as this page was built. Where no primary source answers a question, the answer is UNKNOWN, not a guess.

There is no file behind this page and nothing to buy: the whole of what we hold is printed on this page.

Which kind of token do you hold?

The tax answers depend on what the token legally is, and the four kinds below are different things. The issuer’s own terms say which kind you hold.

Tokenized stock that carries the shareholder's rightsA token backed one-for-one by a real share held for you in custody, so you get the share's economic rights. Example: Dinari dShares. Listings on CoinGecko on 2026-09-23: 36 whose name ties them to Dinari. [counted]
Tokenized stock that only tracks a share (no shareholder rights)A token that moves with a share's price but is the issuer's own debt. You hold a claim on the issuer, not the share. Example: xStocks (Backed) and Ondo Global Markets. Listings on CoinGecko on 2026-09-23: 112 whose name ties them to xStocks, 213 whose name ties them to Ondo. [counted]
Tokenized Treasury or money market fundA share in a fund that holds US government debt, with the fund's share record kept on a blockchain. Example: Franklin OnChain U.S. Government Money Fund (BENJI) and BlackRock's BUIDL. Listings in CoinGecko's tokenized Treasury category on 2026-09-23: 15. [counted]
Payment stablecoinA token designed to stay at one US dollar, redeemable with its issuer. Example: USDC (Circle) and USDT (Tether). Not in the tokenization roster we counted, which lists tokenized stocks and Treasury funds only.

389 of the 750 tokenized stock listings could not be tied to an issuer by name, so which kind they are is UNKNOWN. Read the issuer’s own terms.

Tokenized stock that carries the shareholder's rightsread 2026-09-24

A token backed one-for-one by a real share held for you in custody, so you get the share's economic rights. Example: Dinari dShares.

Tokenized stock that carries the shareholder's rights: five questions read 2026-09-24

Question	Answer	Status	The source's own words
What is it, for tax?	Likely treated like owning the share through a broker, and also a digital asset for broker reporting. The IRS calls a token that gives you an interest in a security a tokenized security, one kind of dual classification asset.	Likely	“A tokenized security is a dual classification asset that provides the holder with an interest in another asset that is a security that is otherwise subject to reporting on Form 1099-B.” — IRS, Instructions for Form 1099-DA (2026) “the crypto asset evidences the holder's ownership interest (whether direct or indirect) in the underlying security being held in custody” — SEC Division of Corporation Finance staff, Statement on Tokenized Securities (28 Jan 2026) “you hold the same economic rights you'd get holding the underlying stock through any traditional broker” — Dinari, dShares
What is taxable income?	Cash dividends are likely taxable as dividends, and selling is likely a capital gain or loss. Dinari pays dividends in stablecoins, not dollars, on the share's own schedule.	Likely	“any distribution of property made by a corporation to its shareholders” — 26 U.S.C. 316, dividend defined “Issuer pays a dividend, you receive the equivalent value in stablecoins on the same schedule” — Dinari, dShares “would be taxed as a capital gain or loss when you sell or dispose it” — IRS, Digital assets (filing guidance page)
Is the wash-sale rule likely to apply?	Likely yes. The IRS tells brokers that wash-sale losses on tokenized securities must be reported, and the wash-sale law covers stock or securities. Whether the token and the same share bought as an ordinary share count as substantially identical is UNKNOWN.	Likely	“Losses from wash sales of tokenized securities must be reported.” — IRS, Instructions for Form 1099-DA (2026) “sale or other disposition of shares of stock or securities” — 26 U.S.C. 1091, loss from wash sales of stock or securities
Will you get a 1099, and which one?	Likely a Form 1099-DA for sales, if a US broker sells for you, and Dinari says it issues a Form 1099-DIV for dividends to US customers.	Likely	“For transactions involving dual classification assets that are tokenized securities, you should file Form 1099-DA and not Form 1099-B.” — IRS, Instructions for Form 1099-DA (2026) “Generally, only a U.S. digital asset broker is required to report on Form 1099-DA.” — IRS, Instructions for Form 1099-DA (2026) “we issue Internal Revenue Service (IRS) Form 1099-DIV” — Dinari, taxes and reporting
What records should you keep?	The IRS says to keep a record of every purchase, receipt, sale or other disposal, and the dollar value of anything received as income. Dinari says trades can be looked up on the blockchain.	Sourced	“Your purchase, receipt, sale, exchange or any other disposition of the digital assets” — IRS, Digital assets (filing guidance page) “The fair market value as measured in U.S. dollars of all digital assets received as income” — IRS, Digital assets (filing guidance page) “you may query the blockchain for current and historical trades” — Dinari, taxes and reporting

Tokenized stock that only tracks a share (no shareholder rights)read 2026-09-24

A token that moves with a share's price but is the issuer's own debt. You hold a claim on the issuer, not the share. Example: xStocks (Backed) and Ondo Global Markets.

Tokenized stock that only tracks a share (no shareholder rights): five questions read 2026-09-24

Question	Answer	Status	The source's own words
What is it, for tax?	UNKNOWN how US tax treats these. The issuers call them debt: xStocks a bearer debt instrument, Ondo a structured note. Both say they are not offered to US persons. No IRS source we read says whether a note that only tracks a share counts as a tokenized security.	UNKNOWN	“Each xStock is a bearer debt instrument classified as a tracker certificate.” — xStocks (Backed), product legal overview “An Ondo tokenized stock is a structured note: a debt instrument issued by Ondo Global Markets (BVI) Limited” — Ondo Global Markets, legal and regulatory “confers no rights or benefits from the issuer of the referenced security” — SEC Division of Corporation Finance staff, Statement on Tokenized Securities (28 Jan 2026)
What is taxable income?	UNKNOWN whether the reinvested dividends are income to you each time. Both issuers fold dividends back into the token instead of paying them out, xStocks after withholding tax. Selling is likely a capital gain or loss, as for any digital asset held as an investment.	UNKNOWN	“Dividends are reinvested net of applicable withholding taxes.” — xStocks (Backed), dividends and stock splits “Dividends are automatically invested back into the referenced stock and reflected in token pricing.” — Ondo Global Markets, corporate actions “they should consult their own tax advisor” — Ondo Global Markets, legal and regulatory
Is the wash-sale rule likely to apply?	UNKNOWN. The wash-sale law names stock or securities that are substantially identical. The IRS broker rule speaks of tokenized securities treated as stock or securities under that law. Whether an issuer's debt note that tracks a share is one is not answered by any source we read.	UNKNOWN	“substantially identical stock or securities” — 26 U.S.C. 1091, loss from wash sales of stock or securities “For such tokenized securities treated as stock or securities under section 1091” — IRS, Instructions for Form 1099-DA (2026)
Will you get a 1099, and which one?	UNKNOWN. Both issuers say they do not sell to US persons, so we found no US broker that says it reports these. Only US digital asset brokers generally must report, and brokers that never hold your tokens are not covered.	UNKNOWN	“xStocks are not marketed, offered, or solicited in the United States, to U.S. Persons” — xStocks (Backed), product legal overview “not "US persons" as defined in Rule 902 of Regulation S” — Ondo Global Markets, legal and regulatory “Generally, only a U.S. digital asset broker is required to report on Form 1099-DA.” — IRS, Instructions for Form 1099-DA (2026) “do not include reporting requirements for brokers commonly known as decentralized or non-custodial brokers” — IRS, Digital assets (filing guidance page)
What records should you keep?	The IRS says to keep a record of every purchase, sale or other disposal. With no US broker report, your own records may be the only record, so also keep the issuer's balance multiplier history, which is where xStocks shows reinvested dividends.	Sourced	“Your purchase, receipt, sale, exchange or any other disposition of the digital assets” — IRS, Digital assets (filing guidance page) “require taxpayers to maintain sufficient records to establish the positions taken on federal income tax returns” — IRS, Digital assets (filing guidance page) “This reinvestment is reflected through a multiplier increase.” — xStocks (Backed), dividends and stock splits

Tokenized Treasury or money market fundread 2026-09-24

A share in a fund that holds US government debt, with the fund's share record kept on a blockchain. Example: Franklin OnChain U.S. Government Money Fund (BENJI) and BlackRock's BUIDL.

Tokenized Treasury or money market fund: five questions read 2026-09-24

Question	Answer	Status	The source's own words
What is it, for tax?	Likely taxed as shares in the fund. For Franklin's US fund the blockchain is the official share record. A fund set up abroad, like BlackRock's BUIDL in the British Virgin Islands, may fall under the foreign investment company rules: UNKNOWN whether it does.	Likely	“The Fund's transfer agent maintains the official record of share ownership via a proprietary blockchain-integrated system” — Franklin OnChain U.S. Government Money Fund, prospectus filed with the SEC “BlackRock USD Institutional Digital Liquidity Fund Ltd., a British Virgin Islands limited company” — BlackRock USD Institutional Digital Liquidity Fund, transfer agent agreement filed with the SEC “75 percent or more of the gross income of such corporation for the taxable year is passive income” — 26 U.S.C. 1297, passive foreign investment company
What is taxable income?	Franklin's prospectus: income dividends are taxed at ordinary rates, none are expected to be qualified dividends, and some may be free of state tax depending on the state. For any other fund, read its own prospectus.	Sourced	“Income dividends are generally subject to tax at ordinary rates.” — Franklin OnChain U.S. Government Money Fund, prospectus filed with the SEC “it is expected that none of the Fund's income dividends will be qualified dividends” — Franklin OnChain U.S. Government Money Fund, prospectus filed with the SEC “may be exempt from state and local income taxation depending on the state” — Franklin OnChain U.S. Government Money Fund, prospectus filed with the SEC
Is the wash-sale rule likely to apply?	Likely rarely matters. A fund that holds its price at one dollar a share generally makes no gain or loss when you sell, so there is no loss for the rule to block. Franklin's prospectus does say the rule can apply when shares are cancelled. For a fund whose price moves, UNKNOWN.	Likely	“sales of its shares will not generally result in a taxable capital gain or loss” — Franklin OnChain U.S. Government Money Fund, prospectus filed with the SEC “may recognize a capital loss unless the "wash sale" rules apply” — Franklin OnChain U.S. Government Money Fund, prospectus filed with the SEC
Will you get a 1099, and which one?	Likely not the new digital asset form. The IRS tells brokers not to use it for money market fund shares, and they may use Form 1099-B. Franklin says you get tax information from the fund after each year. What a foreign fund sends a US holder is UNKNOWN.	Likely	“you should not file Form 1099-DA and you are not required to file, but may file, Form 1099-B” — IRS, Instructions for Form 1099-DA (2026) “you will receive tax information from the Fund with respect to the federal income tax treatment of the Fund's distributions” — Franklin OnChain U.S. Government Money Fund, prospectus filed with the SEC
What records should you keep?	Keep the fund's year-end tax information and a record of reinvested dividends, which Franklin adds to your holding as new shares.	Sourced	“Your income dividends and capital gain distributions will be automatically reinvested in additional shares at NAV on the payable date” — Franklin OnChain U.S. Government Money Fund, prospectus filed with the SEC “require taxpayers to maintain sufficient records to establish the positions taken on federal income tax returns” — IRS, Digital assets (filing guidance page)

Payment stablecoinread 2026-09-24

A token designed to stay at one US dollar, redeemable with its issuer. Example: USDC (Circle) and USDT (Tether).

Payment stablecoin: five questions read 2026-09-24

Question	Answer	Status	The source's own words
What is it, for tax?	Property, not currency. The IRS names stablecoins as digital assets and says digital assets are property.	Sourced	“For U.S. tax purposes, digital assets are considered property, not currency.” — IRS, Digital assets (filing guidance page) “A digital asset is a qualifying stablecoin if it meets three conditions” — IRS, Instructions for Form 1099-DA (2026)
What is taxable income?	Selling or spending one is a disposal you must report, even when the gain or loss is near zero. Holding USDC earns nothing by itself. Interest or rewards a platform pays you for holding stablecoins are likely income.	Likely	“you must report them whether or not they result in a taxable gain or loss” — IRS, Digital assets (filing guidance page) “USDC does not itself generate any interest or return for holders of USDC” — Circle, USDC terms “gross income means all income from whatever source derived” — 26 U.S.C. 61, gross income defined
Is the wash-sale rule likely to apply?	UNKNOWN. The wash-sale law is written for stock or securities and does not mention digital assets. No primary source we read applies it to a payment stablecoin.	UNKNOWN	“sale or other disposition of shares of stock or securities” — 26 U.S.C. 1091, loss from wash sales of stock or securities
Will you get a 1099, and which one?	Maybe not. A US broker using the IRS's optional method need not report designated stablecoin sales when your total from them at that broker is $10,000 or less for the year, and need not report the other stablecoin sales at all. Rewards are not reported on Form 1099-DA.	Sourced	“do not exceed $10,000 for the year” — IRS, Instructions for Form 1099-DA (2026) “is not required to report non-designated sales of qualifying stablecoins” — IRS, Instructions for Form 1099-DA (2026) “Do not report rewards and staking payments on Form 1099-DA.” — IRS, Instructions for Form 1099-DA (2026)
What records should you keep?	The IRS says to keep a record of every purchase, receipt, sale or other disposal, and the dollar value of anything received as income. Circle's terms put reporting on you.	Sourced	“Your purchase, receipt, sale, exchange or any other disposition of the digital assets” — IRS, Digital assets (filing guidance page) “The fair market value as measured in U.S. dollars of all digital assets received as income” — IRS, Digital assets (filing guidance page) “You are solely responsible for reporting and paying any taxes arising from your use of USDC” — Circle, USDC terms

Questions people have asked in public

Each question below was asked by a stranger on a public forum. The quoted words are theirs; the answer quotes a primary source or says UNKNOWN.

Is a tokenized stock taxed as property, like crypto, or as an investment, like a share?Asked in public: “should these be taxed as property instead of investments too?” — Hacker News comment by lxgr, 13 May 2022.Likely. The IRS now names this case. A token that gives you an interest in a security is a tokenized security, so for broker reporting it is likely both a digital asset and a security. A token that only tracks a share is the issuer's own debt, and how that is taxed is UNKNOWN. See the first two tables.“A tokenized security is a dual classification asset that provides the holder with an interest in another asset that is a security that is otherwise subject to reporting on Form 1099-B.” — IRS, Instructions for Form 1099-DA (2026)
Why does the 1099-DA copy the IRS got show what I sold for, but not what I paid?Asked in public: “the version sent to IRS has only gross proceeds but not cost basis” — TurboTax Community: Inputting Coinbase 1099-DA in Turbotax and Mailing to IRS (23 Mar 2026). It had 197 views when we read it [measured].Sourced. A broker reports your cost only for a covered security. For a digital asset that means one bought in an account where that broker held it for you and kept it there until the sale. For anything else, what you paid is yours to prove from your own records.“A digital asset is a covered security only if it was acquired in an account for which the broker provided custodial services” — IRS, Instructions for Form 1099-DA (2026)
My own records differ from my 1099-DA by a few cents. Which do I use?Asked in public: “the IRS may flag my account because it doesn't match the 1099-DA exactly” — TurboTax Community: 1099-DA (Feb 2026). It had 197 views when we read it [measured].UNKNOWN. UNKNOWN whether a small difference from the broker's form triggers an IRS letter; no source we read says. What the IRS does say: report every digital asset transaction and keep records that support what you file.“you must report them whether or not they result in a taxable gain or loss” — IRS, Digital assets (filing guidance page)

“require taxpayers to maintain sufficient records to establish the positions taken on federal income tax returns” — IRS, Digital assets (filing guidance page)
I earned interest on stablecoins and got a 1099-MISC. Is it self-employment income?Asked in public: “interest for staking stablecoins and they issued me a 1099 misc” — TurboTax Community: how to enter crypto interest earnings? (25 Feb 2023). It had 53 views when we read it [measured].UNKNOWN. UNKNOWN whether it counts as self-employment income; these sources do not say, so ask a tax professional. What they do say: interest is income under the tax code, and the IRS tells brokers not to put rewards on Form 1099-DA, which is why it arrived on a different form.“gross income means all income from whatever source derived” — 26 U.S.C. 61, gross income defined

“Do not report rewards and staking payments on Form 1099-DA.” — IRS, Instructions for Form 1099-DA (2026)

Where the words came from

Every source was fetched, saved, and read from the saved copy. 63 quotes on this page were checked word for word against those copies when it was built; one mismatch and the page is not built.

BlackRock USD Institutional Digital Liquidity Fund, transfer agent agreement filed with the SECIssuer source, read 2026-09-24
Circle, USDC termsIssuer source, read 2026-09-24
Dinari, dSharesIssuer source, read 2026-09-24
Dinari, taxes and reportingIssuer source, read 2026-09-24
Franklin OnChain U.S. Government Money Fund, prospectus filed with the SECIssuer source, read 2026-09-24
IRS, Digital assets (filing guidance page)IRS source, read 2026-09-24
IRS, Instructions for Form 1099-DA (2026)IRS source, read 2026-09-24
Ondo Global Markets, corporate actionsIssuer source, read 2026-09-24
Ondo Global Markets, legal and regulatoryIssuer source, read 2026-09-24
SEC Division of Corporation Finance staff, Statement on Tokenized Securities (28 Jan 2026)SEC source, read 2026-09-24
26 U.S.C. 1091, loss from wash sales of stock or securitiesUS Code source, read 2026-09-24
26 U.S.C. 1297, passive foreign investment companyUS Code source, read 2026-09-24
26 U.S.C. 316, dividend definedUS Code source, read 2026-09-24
26 U.S.C. 61, gross income definedUS Code source, read 2026-09-24
xStocks (Backed), dividends and stock splitsIssuer source, read 2026-09-24
xStocks (Backed), product legal overviewIssuer source, read 2026-09-24

What this page does not cover. State tax beyond what a fund’s own prospectus says, holders outside the US, businesses and dealers, and any bill in Congress that has not become law. Sources read 2026-09-24.

Tell us if we have read a source wrong

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How tokenized stocks, Treasury funds and stablecoins are likely taxed