A massive tech update will bring faster, cheaper trading to Wall Street. Get ready for stocks on a blockchain

Core Insights - The article discusses the evolution of stock trading infrastructure, focusing on the shift towards tokenization and its implications for the financial industry [1][4][5] Group 1: Current System and Challenges - The existing DTCC regime allows brokerages to manage stock ownership without recording every transfer, settling transactions the next business day [1][2] - The "T+1" settlement system is seen as outdated in a fast-paced trading environment, prompting calls for a more efficient solution [8][6] - The 2021 market volatility, driven by retail traders, highlighted the limitations of the current infrastructure, leading to temporary trading halts [7] Group 2: Tokenization and Its Impacts - Tokenization is being pursued not only by crypto firms but also by major banks like J.P. Morgan, which are exploring blockchain for asset trading [5][12] - The transition to tokenized assets could enable instant trading and settlement, benefiting active traders and institutional investors by freeing up collateral [11][12] - As of mid-November, the total value of tokenized assets globally was approximately $660 million, with significant interest in tokenized ETFs and major tech stocks [14] Group 3: Industry Perspectives and Concerns - The DTCC is reportedly supportive of tokenization, viewing it as a means to modernize market infrastructure and expand into private markets [16][17] - However, concerns exist regarding the potential risks of tokenization, including discrepancies in pricing and the adequacy of consumer protections [18][19] - The lack of consensus on which blockchain to use among financial institutions could hinder widespread adoption of tokenization [19][20]