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Synthetic tokenized stocks could undermine investor trust in U.S. markets

The writer argues that synthetic structures dilute the idea that share ownership fully matches underlying company stakes.

Reported · Written up by our desk · Market Structure

CoinDesk published an opinion arguing that synthetic tokenized stocks may weaken investor trust in the U.S. model for ownership and market integrity.

The piece says U.S. markets are viewed favorably because investors believe that holding a share means full ownership, and that synthetic tokenization can “cheapens” that trust.

According to the author, synthetic approaches can also shortchange U.S. investors and reduce the value of the issuer-led capital markets framework.

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