Are "tokenized assets" a new kind of scam?

[Jostle]

My thought is that regular market affect the tokenized market, but not the other way around.  Unless, unless, that the tokenized market (say Robinhood) owns a huge % of the circulating shares overall.

[TastyChillySauce00]

Um..... no.  

Just because it's on Robinhood doesn't mean it's safe. Robinhood doesn't vouch for the safety of any of their securities. In fact they go to great lengths to make sure they aren't at fault for anything they allow users to trade.

That much is true but it's better than random offshore tokenized stock issuer, at the very least Robinhood issued stock truly backed 1:1 with the underlying equity by their U.S custody partner and there is smart contract insurance to keep it secure from hacks, unlike derivative that only tracks price.

Certainly the cross border thing is an advantage, which others here have mentioned.

In talking through this, I think the right way to do it would be a real-time pass-through, tradable only at market hours. So when you trade into that token, it instantly buys the stock on the open market, and when you trade out of it, it instantly sells.

This would normally violate about 47 different securities laws (because people have tried this kind of thing before and have caused all kinds of problems), but hey, it's "decentralized" so it's above the law, right?  

That's massive overhead for simply buying and selling stocks, and honestly there is better solution. How about giving identical right and privilege just like traditional traditional securities? well, it's already on the work. Enter SEC's September 17, 2026 Innovation Exemption Order.

[legiteum]

In talking through this, I think the right way to do it would be a real-time pass-through, tradable only at market hours. So when you trade into that token, it instantly buys the stock on the open market, and when you trade out of it, it instantly sells.

That's massive overhead for simply buying and selling stocks, and honestly there is better solution. How about giving identical right and privilege just like traditional traditional securities? well, it's already on the work. Enter SEC's September 17, 2026 Innovation Exemption Order.

This isn't an issue for regulation (although regs are surely another issue, as is the things they regulate to prevent e.g. market manipulation). Instead, the issue is after-hours trading. Either you are trading with the full market, or you are trading with a subset of the market. If it's the latter, then it's a very complicated thing for the average investor to understand.

That's why, despite the added complexity, I suspect a most tokens are going to go trading-hours-only.

With this you still get the benefits of international trading, which is clearly the main draw here (US/EU/etc. traders will just use the exchanges since there's not much benefit otherwise).

Also, just because the Trump administration deregulates it doesn't mean it's not going to create a cluster fuck later and cause millions to lose their money. 

Maybe "innovation" is a good thing, but it's going to be... messy...