EU Warns Tokenized Stocks Could Mislead Investors: ESMA Raises Concerns About Ownership Rights

The European Securities and Markets Authority (ESMA) has issued a warning to investors about the potential for misleading practices in tokenized stocks. At a conference in Dubrovnik, Croatia, Director Natasha Cazenave highlighted concerns that these tokens may fail to accurately represent investor ownership rights, leading to confusion and potentially undermining market trust.