[European Securities and Markets Authority Warns of Liquidity Fragmentation in Tokenized Stocks, Predicts Compliance Challenges for Markets] Over the past approximately 18 months, the market capitalization of tokenized stocks has grown from around $350 million to approximately $2.2 billion. The European Securities and Markets Authority (ESMA) has warned that issuing multiple tokenized versions of the same stock leads to market liquidity fragmentation, and some products have not achieved on-chain atomic settlement. Additionally, ESMA pointed out that prediction market platforms generally lack EU authorization, and if event contracts are classified as financial instruments, they would require licensing. (Source: Ledger Insights)