Regulations

Story: Tokenized Stocks Threaten Wall Street’s Liquidity Model, Tiger Research Warns

By Julie Binoche

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Fragmented Liquidity, Fragmented Revenue. Liquidity fragmentation isn't just a technical headache. It hits income directly.

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What Traditional Finance Is Up Against. The institutions watching this aren't panicking publicly, but they're clearly nervous.

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Ryan Yoon's Structural Warning. Yoon's point, stripped of any jargon, is basically this: the financial sector built its revenue…

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Tokenized stocks are coming for traditional finance. Ryan Yoon, director at Tiger Research, calls them a "serious structural threat" — and it's hard to argue with him once you…

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The core problem isn't complicated, but it's pretty damaging. Traditional markets run on consolidated liquidity.

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Liquidity fragmentation isn't just a technical headache. It hits income directly. Traditional financial institutions make money off spreads, custody, clearing, and settlement…

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Yoon's framing matters here. He's not saying tokenized stocks are a curiosity or a niche product. He's calling it structural. That word choice is deliberate.

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And it's probably going to get worse before it gets better. The speed of adoption is outrunning the ability of legacy systems to respond.

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The institutions watching this aren't panicking publicly, but they're clearly nervous. The decentralization that makes tokenized stocks attractive to retail investors — 24/7…

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Related: Hyperliquid Short Seller Sits on $22M Loss as HYPE Nears All-Time High

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That's the scenario Yoon seems to be flagging. Not a slow erosion but a kind of quiet bypass.

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The efficiency argument cuts both ways, too. Centralized liquidity is efficient when it works — tight spreads, fast execution, reliable settlement. But it's also a chokepoint.

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Financial institutions are apparently exploring ways to adapt — new business models, hybrid approaches, maybe direct participation in tokenized platforms.

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Yoon's point, stripped of any jargon, is basically this: the financial sector built its revenue model around being the necessary middleman.

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Read also: Fantasy Top Shuts Down, Founder Says Crypto and Card Games Dont Mix

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