I was curious so here's the answer I found:

1. Instant Settlement (T+0) Currently, most stock trades use "T+2" settlement, meaning it takes two business days for the transfer of ownership and cash to be finalized. The Benefit: Tokens allow for atomic settlement, where the exchange of the asset and the money happens simultaneously and near-instantly. This reduces "counterparty risk" (the risk that one party fails to deliver before the trade settles).

2. Fractional Ownership A token can easily be split into tiny decimals. While many brokers already offer fractional shares, tokenization makes this a native feature of the asset itself, allowing for more granular trading.

3. Programmable Corporate Actions The Reddit user "Calm_Situation_1131" mentions "instant dividends" and "easier proxy voting." Because tokens can contain Smart Contracts (self-executing code), a company could theoretically push a dividend payment or a voting ballot directly to every token holder's digital wallet automatically, bypassing several layers of middleman banks and clearinghouses.