Woofun AI reports that tokenized stocks are transitioning from pilots to live trading, with Nasdaq and the New York Stock Exchange receiving SEC approval to list tokenized Russell 1000 components. The DTCC has initiated limited production transactions, involving over 50 institutions, aiming for a full commercial rollout in October. While the underlying technology is deemed mature, traditional infrastructure struggles to support continuous, multi-venue trading.

Current SEC-approved models link tokens to original ownership via CUSIP codes and T+1 settlement, preserving legal rights.

However, a proposed "innovation exemption" could allow third-party tokens tracking stock prices without issuer approval, creating distinct legal and operational risks. Industry groups like SIFMA warn that fragmented issuance across incompatible systems may distort price discovery and liquidity. Without unified standards for corporate actions and settlement, the shift toward 24/7 trading poses significant challenges to market integrity and investor protection.