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Several crypto industry executives say the Ministry of Finance (DAT) of Digital Assets (DAT) companies have stolen risks in their shares into stocks on the blockchain.

“Blockchain trades 24/7, while traditional markets have specific operating hours,” Kadan Stadelmann, chief technology officer of Komodo decentralized exchange platform, told Cointelegraph.

The sharp price movements that occur outside of traditional market hours may result in shares of a Treasury company with issued marks and traditional stocks, which does not have enough time to deal with the price hit.

SEC, Stock, Tokenization, RWA Tokenization, Company
Tokenized stocks are worth more than $1.3 billion. source: rwa.xyz

Stadelmann added that smart contracts further amplify the risk by code exploiting or cracking the risk of underlying funds held by cryptocurrency companies and tokenized stocks. Secondswap Decentralized Exchange CEO Kanny Lee said:

“Tag data equity creates a synthesis on top of the synthesis. Investors end up exposing two times, once to volatility in fiscal cryptocurrencies and again to the complexity of corporate equity, governance and securities laws.

Now that dozens of companies are becoming more and more popular, the U.S. Securities and Exchange Commission (SEC) is making fun of the capital market on 24/7. However, there is a lack of legal clarity to keep tokenized stocks in a regulatory grey area.