Tokenized stocks may see limited U.S. demand: TD Cowen
TD Cowen reports limited U.S. demand for tokenized stocks due to existing efficient markets and operational complexities. The SEC's five-year exemption allows tokenized trading of NMS stocks, but issuers and investors show little interest. Figure's tokenized shares saw minimal trading compared to its Nasdaq-listed stock. Perpetual futures show stronger demand than spot stock tokens, with platforms like Coinbase planning to offer them.
How this was made
The 30-second read
Why it matters
The analysis suggests tokenized equity products will remain a niche, with limited impact on traditional equity trading volumes.
Market read
Regulatory development is notable, but immediate trading relevance is low; investors likely to stay with existing brokerage channels.
What to watch
Potential regulatory changes or improvements in AMM liquidity could later boost tokenized stock appeal.
Background
The SEC granted a five‑year exemption for tokenized U.S. stocks, allowing venues to use permissioned AMMs. TD Cowen evaluated investor appetite and found it limited.
Ticker impact
TD Cowen analysis finds minimal demand for tokenized shares, noting Figure's tokenized FGRS traded only 0.1% versus its Nasdaq-listed FIGR.
little to no immediate price movement for FIGR
The article provides no new catalyst for FIGR's underlying stock, only commentary on tokenized product demand.
Market effects
Tokenized stock products face weak demand, limiting broader adoption in equity markets.
U.S. investors likely to stay with traditional brokerage platforms.
Other jurisdictions may observe U.S. reluctance but no immediate global shift.
Counterpoint
Crypto‑focused investors might still find niche arbitrage opportunities in tokenized shares despite low overall demand.
Key entities
- Research FirmTD Cowen
Provided the analysis of tokenized stock demand.
- Public CompanyFigure
Nasdaq‑listed firm with tokenized share experiment (FIGR/FGRS).
