Stock Exchanges Urge Regulators to Stop 'Tokenized Stocks'
A group of the world’s top stock exchanges has called on regulators to take tougher action against tokenized stocks, cautioning that blockchain-based assets may pose risks to investor protection and market stability. In an August 22 letter sent to the U.S. SEC’s Crypto Task Force, the exchanges warned that tokenized equities imitate traditional shares but do not provide legal ownership or shareholder rights. Coinbase and Robinhood have been attempting to launch tokenized stock offerings in recent months. Read more →
Bitpanda Rules Out London IPO. Where To?
Eric Demuth, co-founder of the Austrian crypto exchange Bitpanda, told the Financial Times that while the company is looking to go public, “it will not be in London.” Instead, the exchange is weighing potential listings in Frankfurt or New York. While not very popular in the U.S., Bitpanda is popular in Europe and was valued at $4.1 billion in 2021. The company reported revenues of €393mn in 2024 and launched in the UK earlier this month, allowing users to trade more than 600 tokens. Read more →
Banks Push to Kill Stablecoin Rewards, Fearing Deposit Drain
Big banks want Congress to close what they call a “loophole” in the new stablecoin regulations. New rules bar issuers from paying interest on their tokens, but exchanges like Coinbase can still offer rewards on third-party tokens such as USDC or USDT. Banks fear this would create an uneven playing field – echoing the 1980s shift to money-market funds – and spark mass deposit outflows away from them, assuming customers will choose to earn yield by holding stablecoins at crypto exchanges rather than coins or cash dollars at banks. Read more →
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