Despite new trading rules, the investment bank expects limited demand for token shares

United States Securities and Exchange Commission (( SEC )) in the framework of the token equity pilot, trading platforms are allowed to use automated market making (AMM) mechanisms for completing transactions rather than being limited to traditional order book capture mode. Automatic market makers through asset pools and pre-set algorithm as a transaction pricing, provided that there is enough assets in the pool, stock token , can be achieved around the clock uninterrupted trading. This arrangement provides a technical pathway for U.S. stocks landing on token .

All-day trading doesn't equate to better prices

Analysis by crypto research firm Noch points out that round-the-clock trading does not necessarily lead to a better trading environment. When liquidity is scarce, transaction prices under the AMM mechanism may deviate significantly from reasonable levels and investors will instead suffer poor quotes. In other words, it's one thing for Bitcoin to be able to trade bitcoin at any time or vice versa, but if there isn't enough market depth, its 24-hour trading point of sale would be heavily discounted.

SEC Multiple constraints set for the pilot

In addition to the trading mechanism, SEC sets fairly strict boundaries for this experiment. token must correspond with NMS shares and retain full economic rights attached to underlying shares including dividends, voting rights and liquidation rights. A third-party institution that trades in a company's stock must notify it beforehand, and issuers have the right to object within 30 days.

These requirements make the United States model more difficult to advance, and may be higher than what is already available in overseas markets for token hybrid equity products.

Issuers willing to be the other way round

The interest of the issuer itself is equally questionable. "Our communications with dozens of issuers show that almost all companies, except for those closely associated with the crypto industry such as Figure, have a low willingness to standardize their own stocks, including several highly retail-oriented ones", wrote Noch in his analysis.

Figure case: Traditional stocks are still dominant

Figure's situation may illustrate the scale of this obstacle. The company, which is listed on Nasdaq under its stock code FIGR, simultaneously issued a native token FGRS with the same economic exposure and voting rights at on-chain , both trading in parallel. However, within 24 hours of The Defiant (TD) 's examination, about 99.9% of Figure name trading volume was still derived from traditionally-listed shares, making on-chain almost negligible for token .

This data suggests that even if the token product is technically feasible, it will still need to cross multiple thresholds such as liquidity, user habits and issuer support in order for funds to truly migrate from traditional channels into on-chain .