
💡 Nasdaq’s tokenization plans could lead to market fragmentation
Canadian investment bank TD Securities highlights a key risk of tokenizing securities: the emergence of two markets for the same asset.
After tokenization, stocks could trade in parallel — on traditional exchanges and on blockchain infrastructure. These markets would have different liquidity, volumes, and participants. Add varying time zones and trading hours, and over time this could lead to price discrepancies for the same asset.
🤔 Bottom line: instead of a single price, the market may end up with multiple versions of value — creating new risks and potentially unpredictable consequences for the entire system.
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