Trade US stocks like digital tokens soon?
Detailed summary
Tokenised US stocks could add crypto-like risks to equity markets, with concerns over trading, ownership and investor protections. Read more at straitstimes.com.
The potential drawbacks include money laundering, insider trading and even theft – as the recent US$6.3 billion Binance hack shows.
The accelerating drive to turn listed company stocks into digital tokens risks introducing crypto-like dangers into the US equity market with few benefits. The potential drawbacks include money laundering, insider trading and even theft – as the recent US$6.3 billion (S$8.1 billion) Binance Holdings hack shows. The only winners would be trading platforms hunting for extra income.
The Securities and Exchange Commission (SEC) plowed ahead with efforts to promote tokenised securities – digital entries of rights or ownership in shares, recorded on a blockchain or distributed ledger – in September, suspending many rules and investor protections for firms trying to develop the market.
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