{"id":10291,"date":"2025-08-26T08:28:14","date_gmt":"2025-08-26T08:28:14","guid":{"rendered":"https:\/\/buvei.com\/blog\/?p=10291"},"modified":"2025-08-27T09:03:35","modified_gmt":"2025-08-27T09:03:35","slug":"tokenised-equities-risks-2025","status":"publish","type":"post","link":"https:\/\/buvei.com\/blog\/tokenised-equities-risks-2025\/","title":{"rendered":"WFE Warns on Tokenised Equities: Risks & Oversight in 2025"},"content":{"rendered":"

The rapid rise of tokenised equities<\/strong>\u2014digital tokens designed to represent traditional company shares on blockchain platforms\u2014has 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)<\/strong>, which represents the world\u2019s largest stock exchanges, has sounded an alarm, warning that these products could pose serious risks to investors and market integrity<\/strong> if left unchecked.<\/p>\n

In a letter addressed to the U.S. Securities and Exchange Commission (SEC)<\/strong>, the European Securities and Markets Authority (ESMA)<\/strong>, and IOSCO\u2019s Fintech Task Force<\/strong>, the WFE stressed that tokenised equities do not grant shareholder rights<\/strong>, creating a gap between perceived and actual ownership. At the same time, major platforms like Coinbase<\/strong> and Robinhood<\/strong> are pressing ahead with their tokenised equity strategies, raising the stakes for regulatory clarity.<\/p>\n

For businesses navigating this evolving landscape\u2014especially those managing global payments and compliance<\/strong>\u2014solutions like Buvei\u2019s API-first virtual card platform<\/strong> provide secure, flexible tools to handle cross-border financial operations with transparency.<\/p>\n

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\u00a0What Are Tokenised Equities<\/a>?<\/h3>\n

Tokenised equities<\/strong> are blockchain-based tokens that represent shares of a company but do not provide legal shareholder rights<\/strong> such as voting or dividends.<\/p>\n