According to Woofun AI, CNBC's ETF Edge program recently spotlighted the potential of tokenized stocks to reshape Wall Street's infrastructure.

Nick Cherney, Head of Innovation at Janus Henderson (JHG.US), and Gabor Gurbacs, founder and CEO of Openassets, pointed out that this technology could replace a large portion of the existing trading system, though the two disagree on the pace of adoption. The core dispute centers on the actual implementation timeline and market acceptance following regulatory authorization.

On September 17, the U.S. Securities and Exchange Commission issued a directive allowing blockchain-based trading platforms to trade tokenized versions of already-listed U.S. stocks without registering as exchanges. This interim measure is valid for five years, restricts the scope of trading participants, and sets volume caps, while requiring tokens to carry the same rights as traditional stocks, with issuers able to object to tokens created by external institutions.

Woofun AI-compiled data shows that Janus Henderson's most successful tokenized fund has assets between $500 million and $1 billion, while its flagship ETF manages approximately $30 billion in assets. By comparison, the total global ETF market is about $24 trillion, and tokenized assets amount to less than $500 billion—a striking gap.

Cherney believes the directive's scope is limited, focusing mainly on trading infrastructure. Gurbacs emphasizes that buying stocks currently involves roughly nine intermediary institutions, and tokenization technology could eliminate six or seven of them, with new transfer agent rules making this change possible.

Despite changes in settlement processes and costs, the investor experience remains similar, and the existing brokerage business model can transition to blockchain platforms. Cherney noted that the U.S. market is quite efficient, and cost savings alone are not enough to drive adoption—new use cases such as using S&P 500 fund (SPY.US) tokens to pay rent need to be explored.

The replacement of the traditional system by tokenized stocks is seen as an inevitable trend, but it will unfold in stages. The five-year transition period is a key observation window that will determine whether U.S. investors follow in the footsteps of roughly 200 institutions already using Janus Henderson's tokenized funds.

This process not only tests technological compatibility but also depends on the coordinated evolution of the regulatory framework and market demand.