May 6
Tokenization's Liquidity Divide: Flow Patterns and ETF Inflows
Tokenization's Liquidity Divide: Flow Patterns and ETF Inflows
➤ The SEC has classified third-party 'synthetic' equity tokens as derivatives, creating a liquidity divide between true ownership and synthetic exposure, and aiming to curb synthetic products for retail investors. ➤ The NYSE, in partnership with Securitize, is developing a Digital Trading Platform for issuer-sponsored tokenized securities, promising 24/7 trading and near-instant settlement to enhance liquidity. ➤ Investor skepticism towards synthetic tokens and the upcoming Securitize SPAC IPO are key factors influencing confidence and adoption in the tokenization infrastructure layer.