TD Cowen expects limited demand for tokenized stocks despite SEC’s conditional approval

TD Cowen expects demand for tokenized stocks to remain limited even after the U.S. SEC announced conditional approval for on-chain trading of stock tokens, according to CoinDesk. The global investment bank said U.S. investors already have easy access to equities, and tokenized trading platforms would need to offer compelling advantages large enough to offset limited liquidity and added operational complexity. TD Cowen also said discussions with dozens of issuers, including many consumer-facing companies, showed little interest in stock tokens outside crypto firms such as Figure. The bank added that perpetual contracts remain a more attractive way to invest in crypto-related stocks and said trading volumes are also far higher than for tokenized spot products.