Stock Exchanges Urge Regulators To Crack Down on 'Tokenised Stocks'

A group representing the world's biggest stock exchanges has called on securities regulators to clamp down on so-called tokenised stocks, arguing that the blockchain-based tokens create new risks for investors and could harm market integrity. From a report: Crypto exchange Coinbase and broker Robinhood are among those making a push into the nascent sector that could shake up the securities investing landscape. Proponents say tokenised equities can cut trading costs, speed up settlement and facilitate around-the-clock trading. The World Federation of Exchanges (WFE), in a letter sent to three regulatory bodies last Friday, said it was concerned the tokens "mimic" equities without providing the same rights or trading safeguards.

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