Oh, great! Tokenized equities are like a fancy dress party for stocks-no real rights, just a fancy outfit and a bunch of crypto jargon. The WFE is throwing a tantrum, claiming these tokens are just… well, not real stocks. 🎩
WFE is throwing a hissy fit, tokenized stocks are riskier than a toddler with a hammer, and expanding tokenization is like giving a toddler a credit card. 🤯
- World Federation of Exchanges warned major global regulators about tokenized stocks 🤯
- Tokenized equities, WFE claims, offer lower protections than actual stocks 🧠
- Expanding asset tokenization could confuse investors into buying riskier asset 🎯
Global stock exchanges are now begging regulators to save them from the chaos of tokenized stocks. The WFE sent a letter to major regulators, which is basically a “please, someone, stop this madness” note. 🙏
The WFE sent a letter to three major regulators, which is basically a “these tokens are like a fake designer bag-looks good, but no real value” warning. 🎩
“We are alarmed at the plethora of brokers and crypto-trading platforms offering or intending to offer so-called tokenised U.S. stocks,” the WFE letter wrote. “These products are marketed as stock tokens or the equivalent to stocks when they are not.”
The SEC’s Crypto Task Force, the European Securities and Markets Authority, and the global securities watchdog IOSCO’s Fintech Task Force were the agencies that received the letter. 🛑
Robinhood, Kraken push into tokenized securities 🎯
Tokenized shares represent ownership of underlying shares, but lack some of the inherent shareholder rights. This includes voting rights, dividends, and custody protections. In many cases, traders cannot redeem their shares and can only sell them back on the issuing platform. 🧠
Robinhood, Coinbase, Kraken, Gemini, and eToro are among the companies that offer similar products. However, these platforms try to make it clear that tokenized stocks are not equivalent to the underlying assets. Typically, these assets have a different ticker from the stock, for instance, COINx for tokenized Coinbase stock on Kraken. Moreover, Kraken explains that owning this instrument does not confer shareholder rights. 😂
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2025-08-25 22:30