Tiger Research Warns Asset Tokenization Could Fragment Liquidity

Asset tokenization maps traditional securities such as stocks onto blockchains, allowing investors to trade across platforms on a nearly round-the-clock basis. Tiger Research said that if the U.S. SEC allows third parties to list tokenized stocks, capital could shift away from centralized exchanges, weakening market depth and price discovery. Traditional finance therefore views the prospect as a structural risk.

Tiger Research’s latest study warned that if the same security is spread across multiple blockchains and trading platforms, their separate order books cannot share liquidity. This could create cross-platform price discrepancies, increase trading slippage and fragment exchange revenue. The report did not disclose the study’s publication date, any amounts involved or when an SEC policy might take effect. Its focus remains on potential risks rather than quantified losses that have already occurred.