#Tokenized Stocks May Not Benefit #Crypto Ecosystem


Rob Hadick, general partner at crypto venture firm Dragonfly, stated that tokenized equities will significantly benefit traditional markets but may not deliver expected gains for the crypto industry. He shared his perspective at the #TOKEN2049 conference in Singapore.


The Securities and Exchange Commission is reportedly developing plans to allow blockchain versions of stocks to trade on crypto exchanges. Financial institutions have been pushing the regulator to enable always-open markets for equities trading.


Hadick noted that institutions prefer not to operate directly on general-purpose chains. He cited #Robinhood and Stripe as examples of companies building their own #blockchain infrastructure rather than utilizing existing public networks.


Financial institutions want control over their execution environments without sharing economics or block space with other assets. They seek to manage aspects including privacy settings and validator selection within their own controlled ecosystems.


The use of layer-2 networks for tokenized stocks creates value leakage, according to Hadick. He suggested benefits may not flow back to $ETH or the broader crypto ecosystem as much as many industry participants anticipate.

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October 01, 2025 at 12:36 PM
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