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Tokenized stock liquidity is likely to concentrate in markets where capital and trading activity are already strong, including established exchanges and major blockchain ecosystems, Kal, CEO and co-founder of Lumia, said.
“Crypto has shown us that liquidity isn’t tied to one network. It moves toward better opportunities, deeper markets, and easier access. Tokenized stocks won’t be any different,” Kal told Crypto Briefing. “The biggest opportunity I see is connecting that liquidity across chains rather than creating another set of isolated markets.”
“Crypto has shown us that liquidity isn’t tied to one network. It moves toward better opportunities, deeper markets, and easier access. Tokenized stocks won’t be any different,” Kal told Crypto Briefing. “The biggest opportunity I see is connecting that liquidity across chains rather than creating another set of isolated markets.”
Supporting the same stock across several blockchains could create price discrepancies if each network operates its own liquidity pool. While traders could arbitrage those differences, cross-chain transfers introduce delays and costs that may prevent prices from converging immediately.
Kal distinguished this setup from one in which blockchains handle settlement but orders are matched through a common trading system. In that model, multiple networks could be supported without fragmenting the order book.
“I wouldn’t look at the number of supported blockchains as a measure of success. What matters is whether investors are actually accessing the same liquidity,” he added.
“I wouldn’t look at the number of supported blockchains as a measure of success. What matters is whether investors are actually accessing the same liquidity,” he added.
On round-the-clock trading, Kal said it could let investors respond to weekend announcements and other developments without waiting for the next market session.
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However, he warned that the lack of trading in the underlying shares would make it harder for market makers to hedge positions, potentially reducing the number of buyers and sellers and leading to wider spreads and sharper price movements.
“Having a market open 24/7 is useful, but you also need the funding, custody and settlement processes to support that activity reliably,” he noted.
“Having a market open 24/7 is useful, but you also need the funding, custody and settlement processes to support that activity reliably,” he noted.
