European Securities and Markets Authority: tokenized stock market value increases to 1.9 billion euros, warns of liquidity fragmentation risk

According to a report by the European Securities and Markets Authority, the market value of tokenized stocks has increased from approximately 300 million euros to nearly 1.9 billion euros within 18 months. The European Securities and Markets Authority warns that issuing different versions of tokenized products for the same stock will disrupt liquidity. These tokenized products are essentially packaged securities, with ownership records of underlying stocks stored off chain. The multi-layered intermediary arrangement increases complexity and risk, and many transactions have not yet achieved atomic settlement. (Source: Ledger Insights)