Wall Street Wants Digital Stocks, But Big Investors Say 'Not So Fast'

Big banks and stock exchanges are trying to turn regular stocks into digital tokens (like cryptocurrency versions of stocks), but major investors aren't excited about the idea.

What's happening: Companies like the New York Stock Exchange and Nasdaq have partnered with crypto exchanges to create "tokenized stocks" - digital versions of regular stocks that live on blockchain networks (the technology behind Bitcoin). These would allow people to trade stocks 24/7 and settle trades instantly, instead of waiting the usual 1-2 days.

Why big investors are worried: • Instant payment problems: With tokenized stocks, you'd need to have all the money ready before you trade (called "prefunding"). Currently, big traders can buy stocks and pay later. • Cash flow issues: Having to pay instantly for every trade would tie up huge amounts of money, making it harder for big firms to operate. • Market confusion: If some stocks trade normally and others trade as tokens, it could create two separate markets for the same stock.

Who might use it first: Regular people, especially those outside the US, might start using tokenized stocks before big institutions. This could force major investors to eventually adopt the technology to stay competitive.

The bottom line: While tokenized stocks promise faster, always-open markets, the reality is that changing how trillions of dollars move around isn't simple. Big investors need time to figure out how to handle instant payments without disrupting their business.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/business/2026/03/14/wall-street-pushes-tokenized-stocks-but-institutions-aren-t-eager-to-trade-them