World Federation of Exchanges warns: Tokenized stocks mimic real securities but waive shareholder rights
The World Federation of Exchanges' Warning on Tokenized Stocks The World Federation of Exchanges (WFE) has issued an important warning to global regulators: Tokenized stocks may resemble stocks in structure and function, but they do not provide the associated shareholder rights. This finding raises important questions about the regulation and legal framework of tokenized financial products. Tokenized stocks are digital representations of traditional stocks based on blockchain technology. While they may appear to possess similar features to traditional stocks, they often lack the basic rights and benefits associated with owning regular stocks, such as...

World Federation of Exchanges warns: Tokenized stocks mimic real securities but waive shareholder rights
The World Federation of Exchanges Warning on Tokenized Stocks
The World Federation of Exchanges (WFE) has issued an important warning to global regulators: Tokenized stocks may resemble stocks in structure and function, but do not provide the associated shareholder rights. This finding raises important questions about the regulation and legal framework of tokenized financial products.
Tokenized stocks are digital representations of traditional stocks based on blockchain technology. While they may appear to have similar features to traditional stocks, they often lack the basic rights and benefits associated with owning regular stocks, such as voting rights or dividend rights.
The WFE therefore calls for careful review and regulation of these financial innovations to ensure that investors are fully protected and not misled. Differentiating between real stocks and their tokenized counterparts is critical to the integrity of financial markets and investor protection.
These developments show how important it is to adapt the regulatory framework in the area of digital finance to modern realities in order to ensure both innovation and security in the financial sector.