Major corporations, including Verizon and UnitedHealth, are pushing back against the tokenization of their shares under a new regulatory framework. Broadcom has joined the objections, raising questions about how tokenized versions of publicly traded stock would be handled.
Tokenized stocks are digital representations of traditional equity that trade on blockchain-based platforms. Supporters argue the format could broaden access to investing and speed up settlement. Companies whose shares are involved, however, have expressed reservations about losing control over how their stock is issued and traded.
The pushback highlights a wider tension between financial innovation and corporate governance. Issuers generally maintain close oversight of their shareholder records and trading relationships, and tokenization could complicate that role if third-party platforms create digital versions of their shares without issuer involvement.
The new regulatory framework is expected to shape how these disputes are resolved. Regulators will need to weigh investor access and market efficiency against the interests of the companies whose shares would be tokenized. Further comments from the affected firms and regulators are likely as the rules take shape.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing