SEC Approval Fails to Boost Stock Token Demand, Predicts TD Cowen

TD Cowen, a financial services firm, has expressed skepticism about the demand for stock tokens despite the US Securities and Exchange Commission's (SEC) conditional approval of on-chain trading. According to TD Cowen, US investors already have easy access to equities, making tokenized trading platforms less appealing unless they offer significant advantages.

The firm cited limited liquidity and operational complexity as major drawbacks for stock tokens. In addition, perpetual contracts remain a more attractive option for investing in crypto-related stocks, with trading volumes far exceeding those of tokenized spot products.