Tokenized Stocks Still Follow Wall Street Prices, Study by Exchange Group Finds
By Damian Chmiel
AI summary of the source article
A World Federation of Exchanges study found that tokenized U.S. stocks do not lead price discovery, with underlying exchange-traded shares driving prices instead. Across 61 analyzed pairs, tokens did most of the adjusting when prices drifted apart.
Why it matters
The paper's warning is aimed at regulators, with author Kaitao Lin writing that token buyers obtain the prices of a regulated market "without its disclosure, surveillance, and investor protections."
Key facts
- In none of the 61 pairs analyzed by the World Federation of Exchanges did the tokenized stock lead price discovery.
- For the median pair, more than 80% of the lasting price was traced to the traditional stock.
- The SEC approved a Nasdaq rule to let tokenized shares trade on its order book, as well as a plan for 23-hour weekday trading.
Source excerpt · Finance Magnates
Tokenized U.S. stocks take their prices from the exchanges where the shares trade, a World Federation of Exchanges (WFE) study published today (Tuesday) found. In none of the 61 pairs it analyzed did the token lead price discovery. Brokers and crypto platforms sell the tokens on access to U.S. shares at any hour. Yet for the median pair, the study traced more than 80% of the lasting part of the pr…