Amidst the U.S. Securities and Exchange Commission (SEC)'s announcement of conditional approval for on-chain trading of stock tokens, global investment bank TD Cowen predicted that demand for stock tokens would not be significant. According to CoinDesk, TD Cowen stated, "U.S. investors already have easy access to stocks. Tokenized trading platforms must offer attractive advantages to offset limited liquidity and additional operational complexity." It added, "Furthermore, after speaking with dozens of issuers, including many companies with consumer-facing businesses, interest in stock tokens was minimal, with the exception of crypto companies like Figure." The bank further emphasized, "Perpetual contracts remain a more attractive option for cryptocurrency-related stock investments. Trading volumes are also much higher than for tokenized spot products."
