Columbia Professor Critiques NYSE Tokenization Plan as ‘Vaporware’

Concerns are mounting over the New York Stock Exchange’s plan to tokenize stocks and ETFs on a blockchain, with critics questioning the feasibility and clarity of the project. Industry observers remain divided on whether the initiative will transform traditional trading or fall short of expectations.

The NYSE announced a blockchain-based platform aiming to enable 24/7 trading and instant settlement of stocks and ETFs, along with custody and multi-chain support. However, a Columbia Business School professor described the plan as “vaporware”, citing a lack of key details such as the choice of blockchain, whether the system would be permissioned or permissionless, and the tokenomics and fee structure.

In an X post on Tuesday, Omid Malekan said ;

Critics argue that NYSE’s traditional centralized architecture may not align with the decentralized principles underlying tokenization. Comparisons have been drawn to past attempts by large corporations to dominate emerging technologies, which often faced structural and strategic limitations.

Despite skepticism, some experts see the NYSE initiative as a potential milestone for blockchain adoption. On-chain trading of native tokenized equities could streamline settlement and custody processes, improving efficiency for institutional investors. Analysts project that the real-world asset tokenization market could grow from $22.2 billion to over $11 trillion, driven by clearer regulations and advanced institutional infrastructure.

 CEO of RWA tokenization platform Securitize, said on Tuesday;

The NYSE plan continues to generate debate, highlighting the tension between traditional finance models and emerging blockchain technologies.

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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.