SEC’s tokenized stock push has unclear benefits for crypto: Dragonfly Exec

Rob Hadick, a general partner at Dragonfly, expressed skepticism about the benefits of tokenized stocks for the broader crypto ecosystem at the TOKEN 2049 conference. While he acknowledged that tokenized equities could enhance traditional financial markets by enabling 24/7 trading, he questioned the positive impact on major crypto platforms like Ethereum. Institutions prefer to develop private blockchains, which may create 'leakage,' limiting value flow to the broader crypto community. Hadick noted that such institutions are wary of engaging with general-purpose chains, seeking control over privacy and economics. This contrasts with the prevailing view among some industry leaders who predict that on-chain movement by Wall Street will significantly benefit Ethereum and the crypto market. Currently, tokenized stocks account for a small fraction of real-world asset value on-chain, with efforts underway by various exchanges and fund issuers to elevate their presence in the market.

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