Many cryptocurrency enthusiasts dream of trading traditional stocks around the clock via public blockchains. They imagine a decentralized utopia where anyone can buy fractional shares of major companies without traditional intermediaries.
This view fundamentally misunderstands how institutional finance works. In my opinion, the main token shares will never move to public networks. The future of 24-hour stock trading belongs exclusively to private or semi-private blockchain structures.
the US Securities and Exchange Commission It recently proposed the abolition of two key rules under the regulation of the national market system.
Related to: A token is only as good as the stake behind it – how SpaceX’s four crypto exchange bets came up empty
These rules require that trades be routed to the best national prices and prohibit locked or cross-venue bidding. Analysts like Alex Thorn point out that automated market makers on public chains run afoul of these requirements because they execute against isolated liquidity pools without verifying off-chain quotes. Removing the rules could theoretically open the door to compatible cross-chain trading of tokenized US stocks.
However, this remains a medium-term structural adjustment and not an immediate green light. The proposal still faces a lengthy comment process, and platforms will still need to register with a name Exchanges Or alternative trading systems, fulfill clearing obligations, and ensure token holders retain voting and dividend rights.
Traditional market groups also warn that removing the rules could reduce price transparency and fragment markets.
Operational limitations of public Blockchains
Even with favorable regulations, public blockchains present significant operational hurdles Institutional
Stock trading. The volatility of gas fees remains a primary deterrent. A surge in retail activity could congest public networks and sharply increase transaction costs.
Institutions cannot risk large equity settlements being delayed or becoming more expensive due to unrelated retail movement. traditional finance
It requires imperative implementation.
A bank executing a large trade transaction needs certainty about the cost and timing of settlement. Institutional traders require millisecond accuracy and reliable finality. Public networks prioritize openness and resistance to censorship over the expected productivity demanded by global capital markets.
Maximum extractable value (MEV) represents another critical barrier. Public blockchains broadcast pending transactions into the public memory pool before execution. Sophisticated actors are deploying bots to scan this information and pre-manage large orders through transactional order manipulation.
Billions of dollars have been extracted through these practices in recent years. This is in direct conflict with the fiduciary obligations of traditional brokers and institutional mandates that require better execution. Financial institutions You are unlikely to adopt a system that allows such extraction from a customer’s order flow.
Privacy, compliance and control requirements
Privacy and compliance requirements strengthen the case against public ledgers. Traditional finance operates under strict “know your customer” and anti-money laundering regulations.
general Block chains Reveal transaction data to everyone. Organizations cannot publish their strategic locations or client holdings on a transparent ledger. Regulators also require the ability to freeze assets or reverse transactions under specific legal circumstances. Public blockchains generally resist these interventions, creating challenges when compliance frameworks require administrative oversight.
Wall Street is warming to token stocks. Dream of eliminating middlemen? That’s another story https://t.co/jHO9RtW9fy
– BusinessWeek (@BW) June 17, 2026
Private networks provide the logical solution. Private blockchain technology acts as a shared, cryptographically secure ledger maintained by a trusted group of regulated institutions.
This architecture provides many of the benefits of distributed ledger technology without the unpredictability of public networks. Competitors cannot monitor order flows, trade sizes, or account balances. Transactions remain confidential between authorized participants and Organizers.
These networks can also simplify clearing and settlement by enabling institutions to transact directly with each other. This reduces costs, reduces counterparty risk, and supports ongoing settlement. Enterprise networks also offer dedicated support and contractual service guarantees that generic protocols do not provide.
Institutional adoption is already underway
Major financial institutions are already aware of this fact. JP Morgan operates its Onyx platform for intraday tokenized repo trades and payments. Goldman Sachs uses its digital asset platform to issue and trade digital bonds and other institutional instruments.
HSBC’s Orion platform supports the issuance of gold bonds and digital bonds. These examples demonstrate that financial institutions view blockchain technology primarily as infrastructure for automation, synchronization, and efficiency within controlled environments.
Symbolic stock direction
Market participants continue to see shares of major companies traded on public decentralized exchanges. However, the structural, regulatory and operational realities of global finance point elsewhere.
The SEC may eventually adapt market rules Digital assetsBut the infrastructure itself will remain largely in private hands.
Tokenized stocks are more likely to thrive on secure, permissioned networks designed for institutional performance and compliance than on entirely public chains. The future of financial innovation is not limited to public exposure. It is a special and efficient infrastructure built to meet the demands of modern capital markets.
Many cryptocurrency enthusiasts dream of trading traditional stocks around the clock via public blockchains. They imagine a decentralized utopia where anyone can buy fractional shares of major companies without traditional intermediaries.
This view fundamentally misunderstands how institutional finance works. In my opinion, the main token shares will never move to public networks. The future of 24-hour stock trading belongs exclusively to private or semi-private blockchain structures.
the US Securities and Exchange Commission It recently proposed the abolition of two key rules under the regulation of the national market system.
Related to: A token is only as good as the stake behind it – how SpaceX’s four crypto exchange bets came up empty
These rules require that trades be routed to the best national prices and prohibit locked or cross-venue bidding. Analysts like Alex Thorn point out that automated market makers on public chains run afoul of these requirements because they execute against isolated liquidity pools without verifying off-chain quotes. Removing the rules could theoretically open the door to compatible cross-chain trading of tokenized US stocks.
However, this remains a medium-term structural adjustment and not an immediate green light. The proposal still faces a lengthy comment process, and platforms will still need to register with a name Exchanges Or alternative trading systems, fulfill clearing obligations, and ensure token holders retain voting and dividend rights.
Traditional market groups also warn that removing the rules could reduce price transparency and fragment markets.
Operational limitations of public Blockchains
Even with favorable regulations, public blockchains present significant operational hurdles Institutional
Stock trading. The volatility of gas fees remains a primary deterrent. A surge in retail activity could congest public networks and sharply increase transaction costs.
Institutions cannot risk large equity settlements being delayed or becoming more expensive due to unrelated retail movement. traditional finance
It requires imperative implementation.
A bank executing a large trade transaction needs certainty about the cost and timing of settlement. Institutional traders require millisecond accuracy and reliable finality. Public networks prioritize openness and resistance to censorship over the expected productivity demanded by global capital markets.
Maximum extractable value (MEV) represents another critical barrier. Public blockchains broadcast pending transactions into the public memory pool before execution. Sophisticated actors are deploying bots to scan this information and pre-manage large orders through transactional order manipulation.
Billions of dollars have been extracted through these practices in recent years. This is in direct conflict with the fiduciary obligations of traditional brokers and institutional mandates that require better execution. Financial institutions You are unlikely to adopt a system that allows such extraction from a customer’s order flow.
Privacy, compliance and control requirements
Privacy and compliance requirements strengthen the case against public ledgers. Traditional finance operates under strict “know your customer” and anti-money laundering regulations.
general Block chains Reveal transaction data to everyone. Organizations cannot publish their strategic locations or client holdings on a transparent ledger. Regulators also require the ability to freeze assets or reverse transactions under specific legal circumstances. Public blockchains generally resist these interventions, creating challenges when compliance frameworks require administrative oversight.
Wall Street is warming to token stocks. Dream of eliminating middlemen? That’s another story https://t.co/jHO9RtW9fy
– BusinessWeek (@BW) June 17, 2026
Private networks provide the logical solution. Private blockchain technology acts as a shared, cryptographically secure ledger maintained by a trusted group of regulated institutions.
This architecture provides many of the benefits of distributed ledger technology without the unpredictability of public networks. Competitors cannot monitor order flows, trade sizes, or account balances. Transactions remain confidential between authorized participants and Organizers.
These networks can also simplify clearing and settlement by enabling institutions to transact directly with each other. This reduces costs, reduces counterparty risk, and supports ongoing settlement. Enterprise networks also offer dedicated support and contractual service guarantees that generic protocols do not provide.
Institutional adoption is already underway
Major financial institutions are already aware of this fact. JP Morgan operates its Onyx platform for intraday tokenized repo trades and payments. Goldman Sachs uses its digital asset platform to issue and trade digital bonds and other institutional instruments.
HSBC’s Orion platform supports the issuance of gold bonds and digital bonds. These examples demonstrate that financial institutions view blockchain technology primarily as infrastructure for automation, synchronization, and efficiency within controlled environments.
Symbolic stock direction
Market participants continue to see shares of major companies traded on public decentralized exchanges. However, the structural, regulatory and operational realities of global finance point elsewhere.
The SEC may eventually adapt market rules Digital assetsBut the infrastructure itself will remain largely in private hands.
Tokenized stocks are more likely to thrive on secure, permissioned networks designed for institutional performance and compliance than on entirely public chains. The future of financial innovation is not limited to public exposure. It is a special and efficient infrastructure built to meet the demands of modern capital markets.
