ESMA: Tokenized Stocks May Lead to Liquidity Fragmentation

Odaily: The European Securities and Markets Authority (ESMA) pointed out in its "Trends, Risks and Vulnerabilities Report for the First Half of 2026" that issuing different tokenized versions of the same stock may lead to liquidity fragmentation. The report states that tokenization has potential advantages such as improving efficiency, expanding investor access, enhancing programmability, and enabling atomic settlement; prediction markets have not yet developed significantly in Europe, major platforms have not yet obtained EU licenses, and in most cases licenses are required.