love all the bullish news around the tokenization of stocks, but I won't pretend as if "fragmentation" is not a problem. the sincere truth is that we will keep getting more and more stock tokens onchain. The issuance of stock tokens played a pivotal role in their growth, so I won't also pretend as if we didn't want it. but what is the fix? I will list three of them. - give tokens one shared legal base. - label what each token really is. - and route trades across tokens of the same kind. here is a full picture of the problem. a tokenized stock is a token that follows a real share and many companies now issue them. most are issued without the company behind the stock being involved. take Nvidia as an example, it has tokens from 15 issuers and on 19 blockchains, yet five of those versions hold 87% of the money. the remaining hold almost nothing. the main thing is that the tokens are not the same thing. a ticker can mean five different kinds of claim. It could be; > a price bet with no share sitting behind it aka synthetics. > a company outside the US (offshore) says it holds the shares, and you trust that company. for example, ondo, coinbase, xStocks, bstocks.... > a US broker holds the share for you and passes on dividends, and votes where the share has them. securitize and dinari's tokens are this kind. > a digital copy at the clearing house. It has the same ID number as the real share. coming later thi month per @The_DTCC. > and lastly, the share itself where the company puts its own register onchain. securitize's $SECZ is the perfect example. splitting a stock into many tokens is cheap while buyers and sellers can easily swap between them. it becomes costly when they cannot and here are some things that suffer. - a lender has to accept, price and check each token on its own, so no big pool of collateral forms. Only $247.8M is locked as collateral against tokenized stocks, which is small next to the billions of tokens out there. - liquidity gets cut into slices. Apple tokenized stock has $35.9M of tokens spread over 11 issuers, about $3.3M each on average. - wild prices especially on weekends when the trad market is closed. - votes and rights. how the fixes mentioned above helps the problem. > share a legal base by making tokenized stocks use the same ID at the central securities depository. using separate IDs make the stocks siloed. Liquidity, trading volume and all are split. If they start to share the same ID, they connect to the traditional market and allow for seamless interaction. this fixes split liquidity, enables frictionless cross-market arbitrage and it streamlines corporate actions. > a simple public tag also helps the investors tbh. I have noticed that a lot of issuers just use vague terms in their announcement post and it doesn't exactly clarify anything. There should be a tag to your tokens that tells simply if it is a real share claim, a wrapped claim, or just a price copy? Buyers and lenders should not have to read legal documents to find out. > route trades across versions of the same kind. once tokens are the same kind of claim, a trading app can pool them which makes buyer sees one deep market instead of many thin ones. on the part of very small collaterals backed to tokenized stocks, it's understandable that lenders are mindful before they give out their collaterals. If these assets were pooled, they can be more confident to do so against seeing a very thin market cap. all of these are my own opinion. thank you.