Key Takeaways:
- Tiger Research warns that tokenized stocks may lead to the fragmentation of liquidity and revenue fragmentation on the traditional exchanges.
- The SEC is in the process of developing an “innovation exemption” regime which could grant a third-party the ability to tokenize a listed share without the approval of its issuer.
- Rising demand for on-chain real-world assets (RWAs) including $2.6 billion worth of open interest on Hyperliquid, has already moved capital away from traditional market infrastructure.
Discussions about tokenizing stocks continue to gain momentum as U.S. regulators inch closer to granting entry into the world of publicly listed equities through a blockchain.
The shift is seen by some as accelerating settlement and facilitating a wider range of market opportunity, but the new research takes issue over this, suggesting the shift may have transformative implications for the way global financial markets run.
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