CoinScoopESMA Warns of Liquidity Fragmentation and Compliance Risks in Tokenized Stocks
The European Securities and Markets Authority (ESMA) reported that the market for tokenized stocks has grown to $2.2 billion but warned of liquidity fragmentation caused by multiple versions of the same asset. ESMA also noted that many products lack full on-chain atomic settlement and cautioned that prediction market platforms may face regulatory risks if their event contracts are classified as financial instruments.
Summaries are written by AI from the original article. Not investment advice.