T.Rowe Price Warns Tokenized Shares Need Seamless Liquidity Across Formats

T.Rowe Price's Blue Macellari said tokenized shares won't deliver real efficiency until they can move instantly between on-chain and legacy formats. She warned that separating on-chain and legacy liquidity pools risks 'unintended delays and consequences'.

The head of digital assets at the $1.89 trillion asset manager stated that current tokenization efforts are hindered by regulatory uncertainty, particularly around who has authority to issue a tokenized share.

Macellari noted that several exchanges and clearinghouses, including Depository Trust & Clearing Corporation (DTCC), Intercontinental Exchange (ICE) and Nasdaq (NDAQ), are actively working on tokenization. However, she emphasized the need for caution, citing the importance of building in parallel to avoid disrupting the underlying market.

The Senate's cloture vote on the Digital Asset Market Clarity Act (CLARITY Act) failed 49-50 on Tuesday. Macellari stated that agency-led rulemaking can still provide regulatory clarity, and regulators are willing to move forward under existing authority to publish clear rules for crypto.