Tiger Research Flags Market Risks in Third-Party Tokenized Stock Listings

Tiger Research has cautioned that a recent decision by the US Securities and Exchange Commission (SEC) to allow third-party platforms to list tokenized stocks could split liquidity and fragment market revenues.

According to the firm’s research director, Ryan Yoon, trading activity that is typically concentrated on major exchanges like the NYSE and Nasdaq may instead become spread across multiple blockchain networks and decentralized venues. He said this shift could result in price gaps between platforms, higher costs for executing large trades, and weaker overall market efficiency due to dispersed order flow.

The concerns come shortly after the SEC introduced its “innovation exemption” on Monday, a policy change that would allow tokenized stock listings without requiring approval from the original issuing companies.

Source: Tiger Research