Tiger Research warns SEC's tokenized stock approval may fragment liquidity

The U.S. Securities and Exchange Commission's (SEC) decision to permit the listing of tokenized stocks could fragment liquidity and disrupt existing revenue structures, according to an analysis from Tiger Research. Cointelegraph reported that Ryan Yoon, head of the research firm, warned that capital could disperse from centralized exchanges to various blockchain platforms, leading to liquidity fragmentation. Yoon explained that traditional finance views the dismantling of consolidated liquidity as a serious structural threat. He pointed out that if the same listed stock is tokenized across different blockchain networks and decentralized platforms, the trading volume and order flow that would typically be concentrated on a single market like the New York Stock Exchange (NYSE) or Nasdaq would become scattered. This, he argued, could lead to price discrepancies between platforms, increased slippage on large orders, and ultimately, a decline in overall market efficiency.