Fairmint CEO warns tokenized stocks may fragment market

Joris Delanoue, CEO of Fairmint, warned that the tokenized stock market could face issues 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 noted that some tokenized stocks offer only economic exposure, such as price exposure, rather than actual share ownership, which may leave investors without guaranteed voting rights, dividends, or legal claims to the underlying assets. He emphasized that for the tokenized stock market to grow, the industry requires clear records of investor ownership and common standards for interoperability among different trading and securities systems.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.