The Crypto Industry’s Rush To Tokenize Stocks Is Setting Off Alarm Bells—And Wall Street Wants Regulators To Pump The Brakes
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The dormant battle over how stocks should trade just exploded back into view this week as crypto companies race to sell blockchain-based tokens pegged to traditional equities, prompting warnings from Wall Street titans that these novel products could fragment markets and expose investors to risks they don’t fully understand.
Robinhood Markets Inc. (NASDAQ:HOOD), Gemini Trust Company and Coinbase Global Inc. (NASDAQ:COIN) are among the platforms either launching or seeking approval for tokenized stocks—blockchain instruments that track traditional equities and promise 24/7 trading with instant settlement. The combined…
