TechFlow, September 2 — According to CryptoSlate, Natasha Cazenave, Executive Director of the European Securities and Markets Authority (ESMA), warned on September 2 that most tokenized stock products currently offered in the EU market do not grant actual shareholder rights. Unlike traditional stocks, tokenized stocks are typically issued through special purpose vehicles or intermediaries, with these tokens merely tracking the underlying stock price and lacking voting or dividend rights.
ESMA pointed out that although tokenization promises benefits such as fractional trading and round-the-clock market access, the absence of true ownership may lead to investor misunderstanding. The World Federation of Exchanges (WFE) also called last week for stronger regulation. Cazenave added that most current tokenized projects remain small in scale and suffer from insufficient liquidity, falling short of delivering on their promised efficiency gains.
