Blockchain-based stock tokenization is causing a major disruption in the U.S. stock market, comparable to Napster’s impact on the music industry twenty-five years ago. The conflict between AMC and Robinhood, which listed shares on-chain without the issuing company’s permission, illustrates the growing tensions between traditional companies and new decentralized technologies. This innovation enables international investors to access U.S. stocks more easily and cheaply, an advantage particularly significant in markets where commissions are high and certain stocks unavailable. Nasdaq recently invested $100 million in Payward, a blockchain-native financial firm, and the SEC is working on innovation exemptions for some forms of on-chain stock. The industry acknowledges that threats or lawsuits will not stop this technological evolution.
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