Uzbekistan is preparing to integrate stablecoins into its formal payment system and allow the issuance of tokenized stocks and bonds under a tightly regulated framework starting in 2026, according to local media reports. The plan positions the country to become one of Central Asia’s most structured environments for regulated digital-asset activity. It also represents a major shift for a jurisdiction that once imposed broad restrictions on crypto use but has spent recent years building a more controlled a ...

Core Insights - The global securities regulator has expressed concerns about the risks associated with tokenization, indicating that existing regulations may not adequately protect investors from these new vulnerabilities [1][2] - The International Organization of Securities Commissions (IOSCO) has highlighted that while many tokenization risks are covered by current regulations, the underlying blockchain technology introduces additional risks that could be unexpected for investors [2][6] Tokenization Risks - Investors may not fully understand what they own when purchasing tokenized assets, as different tokenization structures can lead to confusion about ownership rights [3] - The IOSCO report suggests that issuers often fail to provide clear evidence of the efficiency gains promised by tokenization, leaving much of the potential benefits unproven [7] Market Sentiment - There is a divide among financial institutions regarding the viability of tokenization, with some, like Nasdaq, aggressively pursuing blockchain-based trading, while others remain skeptical about its benefits [5][6] - The report indicates that the anticipated efficiency improvements from tokenization, such as lower trading costs and faster settlements, are not consistently realized in practice [6][7] Adoption and Future Potential - Despite limited current adoption, tokenization is viewed as having the potential to transform the issuance, trading, and servicing of financial assets, according to IOSCO [4]

Core Viewpoint - Major U.S. exchanges express concern over the SEC's consideration of exemptions that could accelerate the introduction of tokenized stocks into mainstream markets, fearing it may distort market structure and favor lightly regulated crypto firms [1][2]. Group 1: Concerns from Major Exchanges - The World Federation of Exchanges (WFE) submitted a letter to the SEC, highlighting alarm over platforms offering tokenized U.S. equities without the protections of traditional securities [2][5]. - Tokenized instruments are marketed as equivalents to listed shares but lack legal ownership rights, voting power, and clear channels for investor redress [2][3]. - The WFE warns that broad exemptions could lead to unregulated crypto platforms diverting trading activity from traditional markets, undermining price discovery and creating discrepancies between tokenized and underlying share prices [5][6]. Group 2: SEC's Consideration and Framework - SEC Chairman Paul Atkins is developing an "innovation exemption" framework to allow crypto firms to launch blockchain-based products under conditional relief while the SEC finalizes long-term digital-asset regulations [2][3]. - The SEC is reviewing proposals for tokenized stocks, bonds, and partnership interests, with major financial institutions seeking approval for these products [3][4]. - Tokenized stocks aim to represent traditional shares on a blockchain ledger, facilitating global trading, faster settlement, and fractional access [3][4]. Group 3: Market Structure and Systemic Risk - Some tokenized structures replicate a stock's economic performance without granting actual ownership, while others attempt to place registered equity directly on-chain [4]. - The WFE cautions that tokenized equities could disrupt clearinghouse systems designed to manage netting and collateral, potentially increasing systemic risk [6].

DeFi & Tokenized Assets - Ondo Finance and BNB Chain are collaborating to discuss the future of DeFi and tokenized markets in an AMA [1] - PancakeSwap is partnering with Ondo Finance to introduce over 100 tokenized real-world assets (RWAs) including stocks, bonds, and ETFs on BNB Chain [1] Trading & Incentives - Tokenized assets can now be traded on PancakeSwap with zero fees for the first 30 days [2]

Core Insights - Tokenization of real-world assets (RWAs) is gaining traction, with platforms like Robinhood and Kraken already listing tokenized products, while Coinbase is preparing similar offerings, indicating blockchain-based ownership is entering the financial mainstream [1] - The concept of tokenized venture capital funds could democratize investment, allowing retail investors fractional access to elite venture portfolios that were previously exclusive to institutions and insiders [2] - The liquidity issue poses a significant challenge for tokenized venture capital funds, as their value is tied to portfolio companies that may not see liquidity events for years, unlike tokenized stocks and bonds [4] Liquidity Challenges - The primary challenge in tokenizing venture capital funds is not technological but rather related to liquidity, as venture funds operate on long time horizons [4] - If tokenized venture capital units were freely traded, it could pressure founders of developing startups due to real-time performance metrics and interim valuations, potentially undermining confidence and disrupting funding rounds [5] - Liquidity events for most startups occur roughly every one to two years, making it difficult for tokens to maintain stable and accurate pricing, necessitating a rethinking of how to represent and trade these assets responsibly [6] Potential Solutions - New models are required to make tokenized venture finance feasible, with some firms experimenting with limited forms of tokenization that preserve privacy and restrict trading windows [5] - Exploration of valuation frameworks that reflect the illiquid nature of early-stage investments is underway, indicating a need for innovative approaches to address the liquidity problem [5]