
Key points
- The value of tokenized shares increased rapidly, with market capitalization exceeding $ 370 million
- The movement is driven by large traditional financial companies such as Blackrock, Fidelity and Goldman Sachs
- Large retail and encryption platforms such as RobinHood, Kraken and Coinbase are struggling to offer tokenized stocks
The World Exchange Federation (WFE) has issued a formal invitation to regulatory action against the proliferation of “symbolized stocks”.
According to Reuters, the World Exchange Federation (WFE) urged regulators, including US sec, ESMA and iOSco to tighten stock supervision, warning that these products mimic shares without providing shareholder rights or market safeguards …
– Wu Blockchain (@wublockchain) August 25 2025
This important organization, which represents more than 250 exchanges and liquidation worldwide, argues that these Blockchain -based media are a major threat to protecting investors and the fundamental integrity of established markets, according to The last report.
“We are worried about the plethora of brokers and cryptographic platforms they offer or intend to offer so -called US reserves.
The movement comes in a growing institutional impulse against the rapid innovation that occurs in the cryptographic sector, setting the scene for a central regulatory conflict.
What are tokenized stocks?
Tokenized shares are digital brands, built on blockchain technology designed to monitor the price of the public trading company.
Basically, however, the purchase of these brands does not provide real property to the underlying company. Investors are not registered shareholders and therefore do not have critical rights, such as voting privileges or dividend rights.
WFE raises concern for stocks documented
Despite this fundamental difference, the WFE claims that these products are often traded to retail investors in a way that denotes equivalence with traditional stocks of shares, creating a potentially dangerous misconception.
WFE concerns, described in detail in a letter to major international regulators, extend beyond the confusion of investors. The Federation warns of a tangible danger to the reputation of real companies whose stocks are mimicked.
This argument is likely to resonate vigorously with the regulators and businesses registered by the public, shaping the issue as one of the stability across the market rather than mere technical compliance.
With prominent platforms such as Robinhood and Coinbase proceeding to this hatch, the pressure on the regulators to provide clear and executive guidelines intensifies.
The position of the WFE is unquestionable, that is, the laws on movable values must be strictly implemented in these new assets, the legal frameworks for custody and marketing practices must be strictly suffered to avoid misleading comparisons.
The answer from the regulators will be closely monitored as it determines whether stocks can be integrated into the mainstream financial system or relegated to its periphery.
Earlier, the Capital Market Association and the Financial Markets (SIFMA) have asked the US Securities and Exchange Commission (SEC) to reject requests from encryption companies seeking special permission to provide tokenized stocks.
“SIFMA members read with significant concerns recent reports showing that some digital assets have submitted requests for immediate non -action or exemption from the requirements in accordance with the laws of federal mobile values so that businesses can provide investors with the possibility of buying shares and other transactions or other transactions. declared in an open letter.
Boom in shares
Imagine a digital version of a company’s stock, such as Apple or Tesla, but the one you can buy and sell online just like a encryption. These are called stocks. They have been built on Blockchain technology, which allows marketing at all times, buying tiny shares, lower costs and opening access to investors around the world, often without the need for a traditional bank or broker.
The development of these shares in 2025 was explosive. By the middle of the year, their total market value has increased to the last $ 370 million after a huge 220% increase in their value, creating a wave of excitement similar to the early days of decentralized funding. The amount of money traded on some platforms increased from $ 15 million to a huge $ 100 million per month.
This explosion is guided by some of the biggest names in funding. Giant companies such as Blackrock, Fidelity and Goldman Sachs have begun to offer these products, helping to promote the total value of the company’s shares to over $ 50 billion.
Companies are willing to get involved because the conversion of stocks into brands creates new opportunities and makes purchases run smoother.
The popular transaction applications are also involved. RobinHood, for example, made over 200 stocks available for its users in Europe, including even shares from private companies such as Openai. This move was so popular that it helped drive RobinHood’s high level price at a high level. Other important encryption exchanges also struggle to start their own approved versions.