New SEC exemption allowing third-party tokenized stock listings risks dispersing trading volume across blockchain platforms, research says.
The US Securities and Exchange Commission’s new rule permitting third-party exchanges to list tokenized stocks without issuer approval threatens liquidity fragmentation, according to Tiger Research. The agency’s “innovation exemption” could disperse trading volume from centralized venues like Nasdaq across multiple blockchain networks, reducing market efficiency.
Tiger Research director Ryan Yoon said capital dispersion may create price discrepancies, increase slippage, and degrade overall market quality. The rule, announced five days ago, marks a shift from traditional finance’s consolidated liquidity model, which Yoon called a “serious structural threat.”
Revenue fragmentation is also a risk, as trading fees and order flow split across decentralized platforms. The SEC’s move follows growing interest in blockchain-based securities trading but raises concerns about market stability.