Crypto treasury companies are already capitalizing on highly volatile digital assets, and tokenizing company shares introduces new risks.
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Digital asset treasury (DAT) companies that tokenize their stocks on the blockchain compound the risks to investors and their own businesses, according to several crypto industry executives.
“Blockchains trade 24/7, whereas traditional markets have specific hours of operation,” Kadan Stadelmann, chief technology officer of the Komodo decentralized exchange platform, told Cointelegraph.
Sharp onchain price movements that occur outside of traditional market operating hours could lead to a run on the stock of a treasury company that has issued both tokenized and traditional shares, without the company having sufficient time to respond to a price hit.
through code exploits or the risk of hacking both the underlying funds held by the crypto treasury company and the tokenized shares further magnify risk, Stadelmann added. Kanny Lee, the CEO of decentralized exchange SecondSwap, said:
“Tokenizing DAT equity creates a synthetic on top of a synthetic. Investors end up exposed twice, once to the volatility of the treasury’s crypto and again to the complexity of corporate equity, governance, and securities law. That’s a lot of risk layered onto already volatile assets.”
Tokenized stocks are gaining popularity as , and the US Securities and Exchange Commission (SEC) is . However, the lack of legal clarity leaves tokenized stocks in a .
Related:
The US SEC is to modernize the legacy trading system, which takes nights, weekends, and holidays off, while featuring lengthy settlement times compared to digital asset technology.
SEC officials are weighing plans to allow regulated retail crypto exchanges to offer tokenized stock trading to customers in the United States.
Traditional stock exchanges like the tech-focused Nasdaq and the New York Stock Exchange (NYSE) are also pushing for to keep up with crypto markets that trade around the clock.
Nasdaq announced plans to offer , in March and is targeting a rollout of the expanded trading hours sometime in the second half of 2026.
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