Why this investment bank sees little demand for tokenized stocks despite SEC’s new trading rules
Summary
The SEC’s five-year Innovation Exemption lets qualifying tokenized-stock venues use automated market makers without exchange registration, subject to conditions and trading caps. TD Securities expects limited near-term adoption: U.S. shares are already easy to trade, while tokenized venues face thin liquidity, added complexity, and little issuer interest. In a 24-hour snapshot, 99.9% of Figure’s notional share trading occurred in its traditional Nasdaq stock rather than its blockchain-native token. TD sees perpetual futures as a stronger demand trend; a Binance snapshot showed 96% of Nvidia-related notional volume came from perpetual futures, versus 4% from spot products.
