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Tokenized assets are designed to reflect corporate actions that occur on the underlying stock. This article explains what to expect if events such as stock splits, mergers, or similar actions occur, and what actions (if any) you need to take.

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Do tokenized assets pay dividends?

Yes. Tokenized assets on Roxom distribute dividends when the underlying stock pays dividends.
Did you arrive here from a dividend notification email? Jump to How the dividend is calculated to see the formula applied to your payment.

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How dividends work

  • Eligibility: You receive dividends proportional to the tokenized assets you hold on the Ex-Dividend Date
  • Payment currency: Dividends are paid in BTC and credited to your UTA account
  • BTC conversion rate: The BTC/USD market price at the end of the Stock Payment Date

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Key dates

Your BTC credit is processed on the business day following the Stock Payment Date. For example, if the Stock Payment Date is the 15th, your BTC dividend is credited to your UTA on the 16th. When the dividend is credited to your UTA, you also receive a confirmation email from Roxom.

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Example timeline

Imagine a tokenized stock with an Ex-Dividend Date of May 15, 2026 and a Stock Payment Date of May 30, 2026:
  • Hold until May 14, 2026 (inclusive) — eligible. You receive the dividend.
  • Buy on May 15, 2026 or later — not eligible for this dividend. You will qualify for the next distribution if you still hold on the next Ex-Dividend Date.
  • May 30, 2026 (Stock Payment Date) — Roxom locks in the BTC/USD price at the end of this date to convert the USD dividend to BTC.
  • May 31, 2026 (next business day) — Roxom credits the BTC dividend to your UTA.
When the BTC credit lands in your UTA, you receive a confirmation email from Roxom with a full summary of the payment, including the eligible shares held, the dividend per share in USD, the Ex-Dividend Date and Stock Payment Date, the BTC/USD price used for the conversion, and the net dividend credited in sats.

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Where to see your dividends

Dividend payments are credited to your Unified Trading Account (UTA) as BTC. To view them:
  1. Open your UTA and go to the Transaction log.
  2. Look for entries with Type: Dividend and Symbol: BTC, dated on or after the Stock Payment Date.
Each dividend is recorded with its own Dividend type, so you can easily identify and filter dividend payments in the log. Transaction Log Dividends

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Deductions before conversion

Before the dividend is converted to BTC, the following deduction may be applied to the gross USD amount:

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Income Gain (IG) vs Return of Capital (ROC)

Not all dividends are taxed the same way. The issuer classifies each dividend as either:
  • Income Gain (IG): Taxable income. Subject to 30% U.S. withholding tax. Most common stocks and ETFs (like AAPL or MSTY) pay IG dividends.
  • Return of Capital (ROC): A non-taxable return of your investment. Not subject to withholding tax. Some preferred stocks (like STRC and SATA) pay ROC dividends.

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How the dividend is calculated

For Income Gain (IG) dividends:
The 0.70 factor reflects the 30% U.S. withholding tax applied to the gross dividend. For Return of Capital (ROC) dividends:
Since ROC dividends are not subject to withholding tax, no deductions are applied. In both cases, the BTC price is the BTC/USD market price at the end of the Stock Payment Date.

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Preferred stocks with high-yield dividends

Some tokenized assets on Roxom are preferred stocks that pay recurring, high-yield dividends in BTC. For example, STRC (Strategy Inc.) pays 11.5% annually, deposited every 15 days, and SATA (Strive, Inc.) pays dividends daily. Both are classified as Return of Capital (ROC), meaning no withholding tax applies. To receive a dividend, you must hold the asset before the Ex-Dividend Date. Roxom credits the BTC dividend to your UTA the business day after the Stock Payment Date (for example, if STRC pays on the 15th, Roxom credits it on the 16th).

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Important notes

  • Not all tokenized assets pay dividends-only those whose underlying stock distributes dividends
  • There is no minimum holding requirement-any amount of tokens qualifies
  • Dividends are automatically credited to your UTA account
  • The BTC conversion rate is locked at the end of the Stock Payment Date, even if the credit appears later

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What happens during stock splits, mergers, or other corporate actions?

Corporate actions on the underlying stock may include:
  • Stock splits or reverse splits
  • Mergers or restructurings
  • Ticker or share structure changes
You do not need to take any action when these events occur.

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How corporate actions are applied

When a corporate action affects a tokenized asset:
  • Trading for the affected asset may be temporarily paused
  • New swaps are temporarily unavailable during processing
  • Your token balance is automatically adjusted to reflect the corporate action
    (for example, split ratios are applied mechanically)
  • Once processing is complete, trading resumes normally
These adjustments are designed so that your economic exposure remains consistent, even if the number of tokens or their unit value changes.
For example, in a stock split, you may see your token balance increase or decrease proportionally, while the overall value remains aligned with the underlying stock.

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Important notes

  • Corporate actions are handled automatically at the token level
  • You will never need to manually exchange, burn, or request new tokens
  • Temporary trading pauses are a normal part of safely processing corporate actions
  • Tokenized assets do not grant voting rights or shareholder governance participation
All corporate action processing is handled by the external token provider and reflected automatically in your balance.

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Key takeaways

  • Corporate actions are applied automatically to tokenized assets
  • Temporary trading pauses may occur during processing
  • Your economic exposure is preserved through mechanical adjustments
  • Dividends are paid in BTC for eligible assets
  • No user action is required
This content is for informational purposes only and does not constitute investment advice. Trading digital assets involves significant risk, including the potential loss of your entire investment. Please review our Risk Notice before trading.
Last modified on July 16, 2026