SEC Promotes Tokenized Stocks, Is the Traditional Finance Industry Starting to Worry?

marsbitPubblicato 2026-05-22Pubblicato ultima volta 2026-05-22

Introduzione

The U.S. Securities and Exchange Commission (SEC) is preparing to formally release an "innovation exemption" framework this week. This framework would allow third parties to tokenize U.S. stocks like Apple and Tesla without approval from the listed companies. The move, rooted in a deregulatory vision proposed by pro-crypto commissioners earlier this year, could accelerate the migration of traditional stock markets to blockchain. This development poses a structural threat of "fragmentation" to traditional finance. Core concerns are liquidity fragmentation—where trading volume disperses across multiple blockchains and platforms, leading to price disparities and reduced market efficiency—and revenue fragmentation—where trading fees and intermediary income shift away from domestic exchanges to overseas or competing platforms. The report compares the traditional stock market to a monopolistic "supermarket." Tokenization enables countless "street stalls" to operate outside this system, threatening the exchange's dominance, diluting liquidity for large orders, and slicing into revenue streams. Evidence of this capital fragmentation is already emerging. On the same day the SEC signaled the framework, decentralized platform Hyperliquid saw its RWA (real-world asset) open interest hit a record $2.6 billion, driven by demand for 24/7 on-chain trading of traditional assets. Traditional institutions face a dilemma: either collaborate to build tokenization infrastructure proactively or...

Author: Tiger Research

Compiled by: AididiaoJP, Foresight News

The U.S. Securities and Exchange Commission (SEC) is preparing to formally announce an "innovation exemption" framework this week, which will allow third parties to tokenize U.S. stocks like Apple and Tesla without approval from the listed companies. This move could accelerate the migration of traditional stock markets to blockchain, while also raising deep concerns among exchanges about liquidity fragmentation and revenue loss.

According to a Bloomberg report on May 18, this framework originates from the deregulation vision proposed by pro-crypto commissioners Paul Atkins and Hester Peirce in February. Coinbase and the Blockchain Association had previously submitted formal letters of support, strongly advocating for granting third parties the right to tokenize. However, the guidance issued by Peirce on May 22 is narrower in scope than market expectations, applying only to on-chain stock instruments that fully retain shareholder rights and explicitly excluding synthetic stock tokens that do not carry voting or dividend rights.

Two Core Threats: Liquidity Fragmentation and Revenue Fragmentation

The core impact of tokenized stocks lies in "fragmentation." While the crypto industry often discusses liquidity aggregation, the traditional finance world views it as a structural threat.

Liquidity Fragmentation: When the same stock is tokenized on different blockchains and decentralized platforms, the trading volume and order flow originally concentrated on the NYSE or Nasdaq will disperse across multiple venues. This will lead to price disparities between platforms, increased slippage for large orders, and reduced overall market efficiency.
Revenue Fragmentation: With the dispersion of trading venues, transaction fees and intermediary revenues that originally belonged to domestic exchanges will flow to overseas or competing platforms, directly impacting national financial competitiveness.

A Tiger Research report uses South Korea as an example: The SK Hynix 2x Leveraged ETF launched by Hong Kong asset manager CSOP has grown into the world's largest single-stock leveraged ETF, with assets exceeding 110 billion won (approximately $80 billion). If South Korea could have taken the lead in launching similar products through regulatory sandboxes, these management fees and financial revenues could have stayed within the country.

The End of Traditional Exchanges' "Supermarket" Monopoly

The report uses a vivid metaphor to describe this change: the traditional stock market is like a dominant supermarket where all buyers and sellers are concentrated, and the exchange monopolizes transactions and collects fees. Tokenized stocks are akin to allowing anyone to set up thousands of street stalls without permission, conducting trades directly outside the supermarket.

This dispersion will lead to buyer loss, thinner inventory at each stall, difficulty in executing large trades, and the slicing up of revenue sources. If domestic exchanges hesitate due to regulatory constraints, competing platforms in other jurisdictions will rush to seize global capital flows and intermediary revenues.

Capital Fragmentation Is Already Happening

On the same day the SEC signaled the framework (May 18), the open interest for RWAs (Real World Assets) on the decentralized platform Hyperliquid surpassed $2.6 billion, reaching a record high. Driven by the demand for 24/7 on-chain trading of traditional assets, RWA trading volume on perpetual DEXs is expected to surge further.

Traditional financial institutions and regulators face a dilemma: one option is to proactively build tokenization infrastructure through cooperation, like the NYSE; the other is to lobby regulators to block innovation to protect existing revenues. Regulators are also conflicted—they must control the pace of innovation while preventing domestic revenue from being siphoned off by overseas platforms.

Even if the framework is formally announced, potential conflicts are just beginning. Future focal points will include:

A second "clarity war" surrounding shareholder rights;
How to bring platforms like Hyperliquid, which have grown in regulatory gray areas, into the regulatory system. If deemed unlicensed exchanges, this could trigger a new wave of liquidity and uncertainty shocks.

In the era of digital assets, if financial institutions and jurisdictions do not act quickly, they will permanently lose their long-monopolized fee rights and financial leadership, and capital will continue to disperse in all directions.

Domande pertinenti

QWhat is the SEC's upcoming 'innovation exemption' framework expected to allow, according to the article?

AThe SEC's upcoming 'innovation exemption' framework is expected to allow third parties to tokenize stocks like Apple and Tesla on the blockchain without requiring approval from the companies themselves, provided the tokenized instruments fully retain shareholder rights such as voting and dividends.

QWhat are the two main 'fragmentation' threats that tokenized stocks pose to traditional finance, as outlined in the Tiger Research report?

AThe two main 'fragmentation' threats are liquidity fragmentation and revenue fragmentation. Liquidity fragmentation means trading volume spreads across multiple blockchain platforms, causing price discrepancies and higher slippage. Revenue fragmentation refers to the diversion of trading fees and intermediary income away from national exchanges to competing or foreign platforms.

QWhat example does the article use to illustrate the financial loss a country can suffer by not moving quickly with tokenized products?

AThe article uses the example of South Korea. A Hong Kong-based asset manager's leveraged ETF on SK Hynix has grown into the world's largest single-stock leveraged ETF. The report suggests that if South Korea had acted faster through a regulatory sandbox, the management fees and financial revenue from such a product could have remained within the country.

QWhat platform's RWA (Real World Asset) open interest hit a record high on the same day the SEC signaled its new framework?

AOn the same day (May 18), the decentralized platform Hyperliquid saw its RWA open interest surge to a record high, exceeding $2.6 billion.

QWhat are the two strategic options traditional financial institutions and regulators face in response to tokenization, as mentioned in the article?

AThe two strategic options are: 1) To proactively build tokenization infrastructure through partnerships, similar to what the NYSE is doing. 2) To lobby regulators to block innovation in order to protect existing revenue streams.

Letture associate

IOSG Founder: Web3 Is 'Losing Blood,' How Can Practitioners Survive Better?

IOSG Founder: Web3 Is "Bleeding Out" – How Can Practitioners Survive Better? In a candid reflection, the founder of IOSG Ventures voices deep concerns about the current state of Web3, describing an ecosystem experiencing severe "blood loss." Despite the recent MuShanghai event showcasing a successful pivot towards a more diverse, global community, a somber reality persists: many crypto-native attendees were there exploring exits or new labels in biotech, AI, and robotics. The core issue is identified as a breakdown in the ecosystem's positive feedback loop. Alarmingly, underestimated "low-probability bad events" are occurring simultaneously: a significant brain drain of Chinese developers to AI, a lack of breakout applications despite massive funding, and a widening credibility gap for practitioners globally, often stigmatized as scam artists. This has created a dire接班人 (successor) problem, with the next generation seeing little professional prestige or financial upside in crypto compared to fields like AI. A significant portion of the critique focuses on Ethereum and Vitalik Buterin. While not pessimistic about Ethereum's technology, the founder worries that critical development windows were missed by focusing on niche technical narratives like ZK and L2 instead of mass-market applications. A more urgent concern is that Vitalik may be isolated in an "information bubble," shielded from the grassroots community's hardships by layers of intermediaries, preventing crucial feedback from reaching him. The call is for Vitalik to return to a founder's mindset, re-engage directly with the community, and rally efforts for the next decade. The divergence between U.S. and Chinese OG (Original Gangster) ecosystems is stark. While many U.S. builders reinvest their wealth into the ecosystem, the Chinese scene suffers from a severe lack of "造血能力" (blood-making ability), with most market-driven funds struggling and many early success stories cashing out entirely. This threatens the entire Asian Web3 ecosystem's survival. For individual practitioners, survival advice is pragmatic: find your core "why," maintain life balance beyond token prices, continuously learn new skills (like AI), form small, trusted alliances for mutual support, and practice self-compassion. The industry's greatest need is not money or tech, but lighthouses—individuals at all levels who offer mentorship, grants, referrals, and honest reflection to guide others. The piece concludes with a direct appeal: OGs must pay forward the opportunities the industry gave them; founders must not struggle alone; and builders must continue their work, ensuring it remains a viable profession. The survival of Web3's "cathedral" depends not on any single leader but on the collective responsibility of everyone who remains.

marsbit22 min fa

IOSG Founder: Web3 Is 'Losing Blood,' How Can Practitioners Survive Better?

marsbit22 min fa

Deficits, Inflation, and the New Fed: The Deep Logic Behind US Bond Yields Breaking 5% and the Market Reset

In the week of May 15-19, 2026, U.S. long-term Treasury yields surged to multi-year highs, with the 30-year yield hitting 5.2%, a level unseen since 2007, and the 10-year yield climbing to 4.687%. Equity markets declined in response. Four primary factors are driving the rise in yields. First, stubborn inflation persists, with April wholesale prices rising 6% year-over-year, fueling expectations of potential future Fed rate hikes instead of cuts. Second, newly confirmed Fed Chair Kevin Warsh inherits a complex inflation battle, with markets closely awaiting his first FOMC meeting. Third, deteriorating U.S. fiscal health, marked by large deficits and rising debt servicing costs, is eroding the traditional "safe-haven" premium for Treasuries. Fourth, the "One Big Beautiful Bill" tax cuts are projected to add trillions to the national debt, contributing to Moody's recent credit rating downgrade. Rising yields pressure stocks through several channels: a higher discount rate reduces the present value of future earnings (especially for growth stocks); rising risk-free rates compress equity risk premiums, making bonds relatively more attractive; higher borrowing costs impact consumers and corporations; and a stronger dollar affects multinational earnings. For investors, the environment favors value and financial stocks over long-duration growth stocks. Bond investors find attractive yields in short to intermediate maturities, while income investors see the best fixed-income opportunities in over a decade. Key developments to watch include Chair Warsh's first FOMC meeting, upcoming inflation data, Treasury auction demand, and whether the 30-year yield approaches 6%, a level that could trigger a more sustained equity valuation reset. The bond market's message is clear: the era of cheap government borrowing is over, posing a central challenge for markets in late 2026.

marsbit23 min fa

Deficits, Inflation, and the New Fed: The Deep Logic Behind US Bond Yields Breaking 5% and the Market Reset

marsbit23 min fa

Is MicroStrategy Selling Bitcoin Not a Bearish Signal? Deconstructing the 5 Financial Logics Behind Corporate Bitcoin Divestment

The article "Is Strategy Selling Bitcoin Not a Bearish Signal? Decoding 5 Financial Logics Behind Corporate Bitcoin Divestment" analyzes why companies might sell their bitcoin holdings, arguing it's not necessarily negative. It begins by noting the market's surprise at Strategy's potential sale, contrasting its previous "never sell" stance. The core argument is that corporate decisions prioritize shareholder value, and selling bitcoin can be a rational strategic choice. The article outlines five key financial reasons for such sales: 1. **Increase Bitcoin Holdings Per Share:** Companies can use proceeds from bitcoin sales to repurchase shares when the stock price is undervalued relative to its bitcoin assets. This reduces the outstanding share count, potentially increasing the bitcoin amount backing each remaining share. 2. **Optimize Capital Structure & Reduce Financing Costs:** Building cash reserves through bitcoin sales can improve credit ratings (as favored by agencies like S&P), leading to lower future borrowing costs. Repaying debt with sale proceeds also reduces financial leverage. 3. **Legitimate Tax Planning:** In the absence of wash-sale rules for bitcoin in the US, companies can sell to realize capital losses, then repurchase, lowering the tax basis of their holdings and creating tax offsets. 4. **Counter Negative Market Narratives:** A controlled, non-disruptive sale could demonstrate market resilience and disprove fears that corporate selling would crash the market, thereby normalizing bitcoin as a corporate treasury asset. 5. **Repurchase Preferred Stock at a Discount:** If a company's preferred stock trades significantly below its face value, using bitcoin sale proceeds to repurchase it can retire expensive liabilities at a profit, saving on future dividend payments. The conclusion emphasizes that bitcoin's monetary properties offer flexibility. Strategic sales can protect corporate and shareholder interests, making asset utilization more important than rigid "hold" mandates.

marsbit53 min fa

Is MicroStrategy Selling Bitcoin Not a Bearish Signal? Deconstructing the 5 Financial Logics Behind Corporate Bitcoin Divestment

marsbit53 min fa

Why Did Zhipu Surge Nearly 30% in a Single Day?

"Global AI Model Unicorn" Zhipu's stock surged nearly 30% in a single day, reaching a new market cap high. The catalyst was the launch of its GLM-5.1-highspeed API, boasting a generation speed of **400 tokens per second**, setting a new global benchmark. This speed, roughly 3-5 times faster than industry leaders like OpenAI's GPT-4o and Anthropic's Claude, is achieved **without compromising the full-scale model's capabilities**. In the era of AI Agents requiring dozens of self-calls, such latency reduction is critical, transforming speed from a system metric into a determinant of intelligence limits. The breakthrough stems from a three-layer technical overhaul: 1. **TileRT Inference Engine**: Compiles the entire model into a continuous, always-on computation pipeline using "Warp Specialization," minimizing GPU idle time by having different processor groups handle data loading, computation, and communication in parallel. 2. **Heterogeneous Parallelism for MLA**: To efficiently run the GLM-5.1 model using the MLA attention mechanism, TileRT employs a heterogeneous strategy. One GPU handles sparse indexing/routing, while the others perform dense computation, optimizing for MLA's unique workflow. 3. **ZCube Network Architecture**: Replaces the standard Spine-Leaf (ROFT) network topology with a flat, dual-group interconnect. This design creates a single optimal path between any two GPUs, eliminating network congestion at scale and reducing latency. The business impact is significant: a 15% increase in cluster throughput (free extra capacity), a 40.6% reduction in tail latency (improved stability), and a one-third cut in networking hardware costs. Long-term, this innovation challenges the dominance of NVIDIA's integrated hardware-software stack (GPU+NVLink+InfiniBand), potentially benefiting manufacturers of high-density Leaf switches and optical modules while lowering the software barrier for domestic AI chips like Huawei's Ascend. The innovation proves that more can be achieved with the same compute, reshaping the infrastructure beyond just GPUs.

marsbit2 h fa

Why Did Zhipu Surge Nearly 30% in a Single Day?

marsbit2 h fa

The Powell Era Concludes: Warsh Takes Over the Fed, What It Means for Global Finance and the Crypto Market?

The podcast discusses the implications of Jerome Powell's departure and Kevin Warsh's appointment as Federal Reserve Chair for global markets and crypto. It highlights a significant divergence between bond markets, which price in global tightening and persistent inflation, and equity markets, driven by AI hype—a disparity reminiscent of the dot-com bubble. The analysis introduces the "Bliss Trade" concept, a structural expectation of government stimulus during crises, which underpins risk asset valuations and currency debasement trades. Inflation is seen as sticky, driven by deglobalization and further complicated by geopolitical tensions, unlikely to fall quickly even if immediate crises subside. Powell's tenure is critiqued for misjudging inflation and overseeing the de-banking of crypto firms, despite defending Fed independence. Regarding crypto, Bitcoin is viewed as a macro asset and a hedge against currency debasement, but its current muted performance stems from competition with higher-beta assets like AI stocks. The potential Clarity Act is seen as more beneficial for Ethereum than Bitcoin, with concerns about tokenization innovation leading to pure speculation. A key warning signal is the widening gap between the market-cap-weighted and equal-weighted S&P 500 indices, suggesting underlying market fragility.

marsbit2 h fa

The Powell Era Concludes: Warsh Takes Over the Fed, What It Means for Global Finance and the Crypto Market?

marsbit2 h fa

Trading

Spot

Futures