Tokenized Stocks Still Follow Wall Street Prices, Study by Exchange Group Finds

A study by the World Federation of Exchanges (WFE) reveals that tokenized U.S. stocks fail to lead price discovery compared to their underlying traditional equity counterparts. Analyzing 61 pairs of xStocks issued by Backed, the research found that over 80% of long-run price movements originate from traditional stock exchanges rather than token platforms. When price discrepancies occur, token prices typically correct toward the stock price within the next trading day. The WFE, which represents traditional stock exchanges, argues that these tokens mimic equity exposure without providing equivalent investor protections or shareholder rights. While token platforms market 24/7 access as a primary benefit, the study concludes that this does not grant them influence over market pricing. The findings highlight a significant liquidity gap, noting that token markets remain an order of magnitude thinner than traditional venues. This research serves as a regulatory argument for tighter oversight as traditional exchanges like Nasdaq move toward extended trading hours to compete with tokenized offerings.