Tokenized Stocks Could Heighten Risks for Crypto Treasuries, Komodo CTO Says

Tokenized stocks magnify risk for crypto treasury companies by layering onchain volatility and smart-contract exposure on top of traditional equity ￰0￱ DAT companies face 24/7 price swings, settlement complexity, and code/hack vulnerabilities that can quickly impact both token holders and ordinary ￰1￱ risk: 24/7 onchain trading can trigger rapid runs on tokenized treasury ￰2￱ contract exploits and custody failures can affect both tokenized shares and the treasury’s crypto ￰3￱ stocks reached over $1.3 billion in value, highlighting growing exposure (). Tokenized stocks risks rise for crypto treasuries—understand tokenized DAT company exposure and mitigation ￰4￱ expert analysis and key ￰5￱ treasury companies are already capitalizing on highly volatile digital assets, and tokenizing company shares introduces new ￰6￱ are tokenized stocks risks for crypto treasury companies?

Tokenized stocks risks include amplified market volatility, smart-contract vulnerabilities, and regulatory ￰7￱ DAT companies that issue blockchain-based shares expose investors to both the treasury’s crypto exposure and the complexities of equity governance, increasing systemic and investor-level ￰8￱ do tokenized DAT companies increase investor and corporate risk? Tokenized DAT companies create layered exposure: investors are exposed to the treasury’s crypto holdings and to the tokenized equity’s legal and governance ￰9￱ Stadelmann, CTO of Komodo, notes that blockchains trade 24/7 while traditional markets do not, enabling price moves outside normal trading ￰10￱ onchain price movements that occur during off-hours can trigger liquidity ￰11￱ risk is heightened when a company issues both traditional shares and tokenized equivalents and cannot respond in time to rapid price ￰12￱ stocks have crossed $1.3 billion in value.), and clear corporate governance for tokenized ￰13￱ independent smart-contract audits and public audit ￰14￱ segregated custody reserves for tokenized assets versus operating crypto ￰15￱ circuit breakers and settlement limits for token trading during ￰16￱ legal status and investor rights clearly in token ￰17￱ does round-the-clock trading change market dynamics? 24/7 onchain trading reduces market friction but increases the probability of sudden, large price ￰18￱ has announced plans to expand trading hours, and SEC discussions on tokenized stocks point to a potential future of extended market ￰19￱ changes demand faster corporate responses and clearer disclosure ￰20￱ president Tal Cohen announces the push for 24 hour stock trading.