ESMA Warns Tokenized Stocks Pose Investor Confusion

Natasha Cazenave, Executive Director of the European Securities and Markets Authority (ESMA), has raised concerns about the potential for confusion among investors regarding tokenized stocks. Speaking at a conference in Dubrovnik, Croatia, Cazenave explained that while these tokens offer continuous trading and fractional ownership, they often lack traditional shareholder rights like voting. This distinction between token representation and actual ownership, she emphasized, could lead to misleading or confusing investor actions.