SEC tokenized stock plan raises exchange revenue fears

Tokenized stocks could move trading activity away from traditional exchanges as regulators weigh new rules for onchain equities.

Tiger Research said tokenized stocks could create two main risks for traditional markets: liquidity fragmentation and revenue fragmentation. The report linked those risks to the SEC’s reported innovation exemption, which may allow third parties to tokenize listed stocks such as Apple and Tesla without issuer approval.

The research said traditional finance treats the break-up of centralized liquidity as a “serious structural threat.” In simple terms, trading that usually sits on exchanges such as the NYSE or Nasdaq could move across several blockchain networks and decentralized venues.

That shift could create different prices for the same stock-linked asset across venues. It could also make large trades harder if buyers and sellers spread across many platforms instead of one deep market.

Revenue could move away from domestic exchanges

Tiger Research also warned that exchange revenue could split if tokenized stocks trade on competing venues. Fees that normally flow to domestic exchanges, brokers, and clearing systems could instead move to offshore platforms or new blockchain-based markets.

The report said this issue also affects national financial competitiveness. If one country delays tokenized market rules while another moves faster, trading fees and market activity can shift across borders.

This is why the SEC’s reported exemption matters. Related coverage said the SEC may allow tokenized public stocks on blockchain platforms, but tokens may need to carry the same rights as traditional shares, including dividend and voting access.

SEC Commissioner Hester Peirce has also warned that blockchain does not change the legal nature of the asset. In a July 2025 statement, she said “Tokenized securities are still securities.” She added that market participants must follow federal securities laws when dealing with tokenized instruments.

Hyperliquid shows onchain RWA demand

The shift is already visible in crypto markets. Hyperliquid said RWA trading open interest reached $2.6 billion on May 18, setting a new all-time high and doubling from two months earlier.

Tiger Research used Hyperliquid’s growth to argue that capital is already moving toward 24/7 onchain access to real-world assets. That demand puts pressure on exchanges and regulators that still rely on older trading hours, settlement systems, and venue models.

RWA.xyz data also shows that tokenized stocks remain small but active. Its dashboard lists $1.53 billion in tokenized stock value, $3.40 billion in monthly transfer volume, and more than 272,000 holders.

Exchanges are already moving onchain

Traditional exchanges are not ignoring the shift. Reuters reported in March that the NYSE partnered with Securitize to develop tokenized versions of traditional financial securities for a future NYSE-affiliated digital platform.

NYSE planned to work with Securitize on digital transfer agent standards, trade processing, and tokenized security infrastructure. Reuters also noted that U.S. exchanges, including NYSE and Nasdaq, have been increasing efforts to put stocks, bonds, and funds on blockchain rails.

The core question is now control. If tokenized stocks develop inside regulated exchange systems, traditional venues may keep part of the flow. If third-party platforms grow faster, stock trading could become more fragmented.