Challenges Emerge in Wall Street’s Rush to Tokenize Stocks
Wall Street is accelerating its efforts to tokenize stocks, with major exchanges like Nasdaq and London Stock Exchange Group investing heavily in blockchain infrastructure. At the Onchain Leaders Gathering in Geneva, experts highlighted that while tokenization has gained momentum, key challenges remain—particularly around liquidity, privacy, compliance, and institutional utility. A growing parallel market for tokenized equities is forming, with RWA.xyz reporting $2.91 billion in distributed assets as of September 10. However, the sector faces volatility: while holder numbers rose sharply by 174% over a month, transfer volume dropped nearly 53%. This discrepancy raises concerns about market depth and reliability. The AMC token controversy has also exposed issues around ownership rights—holders do not receive shareholder benefits despite tracking stock prices. Regulators have warned that such products could undermine investor protections.
Tickers: $NDAQ
Topics: blockchain financial infrastructure market innovation tokenized stocks