Viewpoint: The SEC plans to allow third-party tokenized stocks, which may lead to dual fragmentation of liquidity and revenue for traditional exchanges

Tiger Research's Research Director Ryan Yoon stated that the U.S. Securities and Exchange Commission (SEC) is preparing to launch an "innovation exemption" framework that allows third parties to tokenize listed stocks without the issuer's approval.

Ryan Yoon warned that this move could cause two major structural shocks to traditional exchanges: first, liquidity fragmentation, as funds will disperse from centralized exchanges to multiple blockchain platforms; second, revenue fragmentation, as trading fees and intermediary income may flow to overseas or competing platforms, threatening the competitiveness of U.S. finance.

He believes that traditional exchanges are like monopolistic superstores, while tokenized stocks are akin to allowing anyone to set up a street stall, which will significantly change the concentration of capital markets. The SEC is advancing this framework at this time to keep global financial income within the domestic regulatory scope.