Tokenized stocks may see limited U.S. demand: TD Cowen
The SEC has opened a five-year route for tokenized U.S. stock trading, but TD Cowen has found that domestic investors, institutions, and listed companies show little appetite for the products. SummaryTD Cowen expects limited adoption among U.S. retail and institutional investors.Figure recorded 99.9% of examined trading through its conventional Nasdaq-listed shares.SEC relief requires stock tokens to preserve economic, dividend, voting, and liquidation rights.Nvidia perpetual futures generated 96% of related notional volume in a Binance snapshot. TD Cowen said U.S. investors already have efficient access to listed shares, leaving tokenized venues under pressure to offer benefits that outweigh thin liquidity and added operational work. Reid Noch, vice president of U.S. equity market structure at TD Cowen, wrote in a Friday paper that both retail and institutional demand will likely remain limited during the markets early stage. “U.S. investors already have efficient access to the underlying shares,” Noch wrote, adding that tokenized platforms need a compelling benefit to offset their operational complexity and restricted liquidity. The assessment followed the U.S. Securities and Exchange Commissions five-year tokenized stock exemption, announced on Sep. 17. The conditional relief lets qualifying Tokenized Securities Venues use permissioned automated market makers and liquidity pools to trade tokenized National Market System stocks. Discover more Crypto trading









