Tokenizing DAT Stocks Increases Investor Risk, Crypto Execs Say

Crypto executives warn that tokenizing stocks tied to digital-asset treasuries (DATs) compounds investor risk. They say crypto treasury companies already capitalize on highly volatile digital assets, and issuing tokenized company shares adds further vulnerabilities.

key facts
- Crypto executives say tokenizing stocks of DATs \"compounds investor risk.\"
- Crypto treasury companies are already capitalizing on highly volatile digital assets.
- Tokenizing company shares introduces new risks beyond those of the underlying assets.
- The warning was reported by Cointelegraph.
- The article highlights concerns about investor protection as tokenized shares proliferate.

background information
Tokenization converts traditional securities into blockchain-based tokens that can enable fractional ownership and faster transfers. The trend has grown alongside crypto firms holding sizable, volatile digital-asset treasuries, prompting industry debate over layered risks.

Impact: Wider adoption of tokenized shares for DAT-heavy firms could amplify losses for investors and complicate custody, disclosure and regulatory oversight, increasing pressure on market participants and regulators to clarify investor-protection rules.