Nasdaq tokenization plans could split trading into two markets — TD Securities

What: Nasdaq plans to tokenize its listed stocks, potentially creating a separate market for tokenized securities.
Why: This move could lead to trading fragmentation, increasing the risk of price gaps and making it more challenging for investors to navigate the market.
Signal: TD Securities warns that tokenized stocks could shift trading beyond traditional US exchanges, exacerbating market fragmentation.
Watch: The impact of tokenization on market liquidity and investor experience in the coming weeks and months.
Risk: Price gaps and market fragmentation, as tokenized securities may trade on separate markets, potentially creating inefficiencies and challenges for investors.