Tokenized Private Stocks Expose Liquidity, Rights Flaws

Tokenized private stocks promise 24/7 trading and broader access to high-value real-world assets. Yet most current offerings merely wrap opaque, illiquid private shares in a digital shell. Investors face unclear ownership rights, limited exit options, and weak investor protections. To fulfil tokenization’s democratizing potential, platforms must enforce legal equity rights, record transparent on-chain ownership, and secure explicit backing from the issuing companies. Without these fundamentals, tokenized private stocks risk remaining over-engineered window dressing rather than a true bridge between private and public markets.