Tokenization Takes Center Stage on Wall Street

Wall Street's tokenization boom is sparking debate over the risks and potential benefits of converting stocks into digital tokens.

The Depository Trust & Clearing Corp. recently completed a pilot program that converted equities, Treasuries, and exchange-traded funds into digital tokens using blockchain technology.

Proponents say tokenization could lead to faster transaction settlements and lower costs for investors, as well as easier trading of fractions of shares and even around-the-clock markets.

However, some experts warn that the increased complexity and reliance on technology could also introduce new risks, such as cybersecurity threats and errors in record-keeping.