[European Securities and Markets Authority Report: Tokenized Stocks May Lead to Liquidity Fragmentation] According to Ledger Insights, the European Securities and Markets Authority (ESMA) has released its latest 'Trends, Risks, and Vulnerabilities Report for the First Half of 2026,' which dedicates three chapters to digital assets and prediction markets. Regarding crypto assets, the report warns of risks stemming from the increasing interconnectedness between cryptocurrencies and the traditional financial sector. On tokenization, the report highlights that issuing different tokenized versions of the same stock could lead to liquidity fragmentation. As for prediction markets, the report notes that prediction markets have not yet achieved significant development in Europe. This is primarily because major platforms do not hold EU licenses, and in most cases, obtaining such licenses is required. The European Securities and Markets Authority (ESMA) outlined several potential advantages of tokenization, including improved efficiency, expanded investor access, programmability, and atomic settlement.