The rapid rise of tokenised equities—digital tokens designed to represent traditional company shares on blockchain platforms—has ignited both innovation and concern across global markets. Proponents argue these assets can reduce settlement times, enable 24/7 trading, and democratize access to equities. Yet, the World Federation of Exchanges (WFE), which represents the world’s largest stock exchanges, has sounded an alarm, warning that these products could pose serious risks to investors and market integrity if left unchecked.
In a letter addressed to the U.S. Securities and Exchange Commission (SEC), the European Securities and Markets Authority (ESMA), and IOSCO’s Fintech Task Force, the WFE stressed that tokenised equities do not grant shareholder rights, creating a gap between perceived and actual ownership. At the same time, major platforms like Coinbase and Robinhood are pressing ahead with their tokenised equity strategies, raising the stakes for regulatory clarity.
For businesses navigating this evolving landscape—especially those managing global payments and compliance—solutions like Buvei’s API-first virtual card platform provide secure, flexible tools to handle cross-border financial operations with transparency.
Tokenised equities are blockchain-based tokens that represent shares of a company but do not provide legal shareholder rights such as voting or dividends.
How they work:
A platform creates tokens pegged to the value of underlying company shares.
Investors trade these tokens on crypto exchanges, often outside normal market hours.
Settlement is near-instant, removing traditional intermediaries.
Benefits:
Lower transaction costs compared to traditional brokers.
Faster settlement times.
Global accessibility, especially for investors unable to access certain exchanges.
While these benefits attract traders, the lack of formal rights creates a regulatory grey zone that financial watchdogs are keen to address.
The WFE has made its stance clear: tokenised equities should not be marketed or treated as traditional shares without the same regulatory safeguards.
Key risks highlighted include:
Investor Confusion: Token holders may believe they own actual shares when, in reality, they hold a derivative-like product.
Market Integrity: If token markets collapse, it could damage the reputation of the companies whose shares are being “mirrored.”
Regulatory Arbitrage: Platforms may exploit jurisdictional gaps to market tokens without sufficient oversight.
Systemic Risk: Rapid growth of these products without regulation could destabilize broader financial systems.
This aligns with the SEC’s July statement reaffirming that tokenised securities remain subject to U.S. securities laws, regardless of their digital wrapper.
Despite these warnings, crypto-native platforms are doubling down:
Robinhood: Introduced tokenised equities for EU customers in mid-2025, with plans to expand into private company tokens, including entities like OpenAI (which publicly stated it had no involvement in the offering).
Coinbase: Reportedly seeking SEC approval to roll out tokenised equities in the U.S., signaling institutional ambitions.
These moves underscore the growing demand for tokenised products and the urgent need for clear global regulatory frameworks.
In this shifting environment, regulatory compliance and secure financial infrastructure are paramount. This is where solutions like Buvei’s virtual card platform can support businesses:
Cross-Border Payment Management: Handle global transactions seamlessly without exposure to hidden FX risks.
Compliance-Ready Infrastructure: Designed with AML and KYC requirements in mind, reducing legal exposure.
API-First Integration: Enables fintechs and enterprises to integrate payment systems quickly and securely.
Flexibility for Digital Assets: Offers companies a compliant bridge between traditional finance and blockchain-based assets.
As tokenised equities evolve, financial institutions, brokers, and fintech startups must prioritize tools that ensure trust, transparency, and regulatory alignment—areas where Buvei adds measurable value.
The surge of tokenised equities presents both opportunities and risks. While companies like Coinbase and Robinhood are pushing innovation forward, regulators and institutions like the WFE are rightfully cautious, emphasizing the need for securities laws, investor protections, and clear custody frameworks.
For enterprises operating in this dynamic financial ecosystem, success will hinge not only on adapting to new digital asset models but also on maintaining compliance and secure payment solutions. Leveraging platforms like Buvei helps businesses manage cross-border operations with confidence, ensuring they remain agile while navigating regulatory change.
Tokenised equities may reshape global markets, but without robust safeguards, they risk undermining the very trust they aim to build. Striking the balance between innovation and investor protection will define the future of this market.
