Fairmint CEO warns tokenized stocks risk market fragmentation

Joris Delanoue, CEO of on-chain securities infrastructure firm Fairmint, warned that the tokenized stock market could face problems similar to Wall Street’s paper crisis in the 1960s if it becomes fragmented across exchanges, special purpose vehicles, token wrappers and separate ledgers. Delanoue said some tokenized stocks provide only economic exposure, such as price exposure, rather than actual share ownership, meaning investors may not be guaranteed voting rights, dividends or legal claims to the underlying assets. Delanoue added that for the tokenized stock market to grow, the industry needs clear records of investor ownership as well as common standards and interoperability linking different trading and securities systems.