Wall Street pushes tokenized stocks, but institutions aren’t eager to trade them

Exchanges are racing toward blockchain-based equities and 24/7 trading. Institutions, however, fear liquidity and funding risks. What to know : Exchanges and crypto platforms are pushing toward tokenized stocks and near-24/7 trading, but many institutional investors are uneasy with instant settlement. Large trading firms say real-time settlement would require trades to be fully prefunded, raising financing costs, straining liquidity at peak times and complicating day-to-day market operations. Retail investors, especially overseas, are more likely to adopt tokenized markets first, potentially shifting liquidity and forcing institutions to follow while raising new risks of market fragmentation and confusion over what investors actually own.