WFE Research Finds Underlying Equity Markets Are the Dominant Source of Price Discovery for Third-Party Tokenised Equities

 

PRESS RELEASE

WFE Research Finds Underlying Equity Markets Are the Dominant Source of Price Discovery for Third-Party Tokenised Equities 

London, 20 October 2026 –  New research from the World Federation of Exchanges (WFE), the global industry association for exchanges and central counterparties (CCPs), finds that the underlying securities traded on traditional exchanges remain the main source of price discovery for third-party tokenised equities, despite tokens being available to trade around the clock. 

The paper, One Instrument, Two Technologies: Price Discovery Between Tokenised and Traditional Equity Markets, analyses 61 matched token–underlying pairs over the first 11 months of the tokenised equity market, from July 2025 to May 2026. 

It finds that the price relationship between tokenised equities and their underlying securities largely holds, with around 80 percent of pairs showing cointegration and the long-run relationship almost exactly one-for-one. Where prices diverge, the token generally does most of the adjustment back towards the price of the underlying equity. 

The price-discovery analysis points in the same direction. For the median pair, more than 80 percent of the permanent component of the common price is attributed to the underlying equity. Using the Hasbrouck information-share measure, the token does not lead price discovery in any of the pairs analysed. 

Pedro Gurrola-Perez, Head of Research at the WFE, said: “The results show that the fact that a tokenised market trades around the clock does not mean that it leads price discovery. The underlying equity market remains the anchor, while the token does most of the adjustment when the two prices diverge.  

“In the 11 months covered by the study, tokenisation is extending access to prices formed in the established equity market rather than changing where those prices are formed.” 

Nandini Sukumar, CEO of the WFE, said: “The research illustrates that the true exchange remains the source of price discovery. Even when a tokenised version of an equity can trade around the clock, the underlying equity market remains the reference point for that price.

"Tokenisation may change how securities are held, transferred and accessed, but it does not change the role of the market that establishes the underlying price."

 

Read the full paper, One Instrument, Two Technologies: Price Discovery Between Tokenised and Traditional Equity Markets.

For more information, please contact:

Oonagh Shiel
Communications Manager
Email: communications@world-exchanges.org

About the World Federation of Exchanges (WFE):

Established in 1961, the WFE is the global industry association for exchanges and clearing houses. Headquartered in London, it represents the providers of over 250 pieces of market infrastructure, including standalone CCPs that are not part of exchange groups. Of our members, 39% are in Asia Pacific, 41% in EMEA and 19% in the Americas region. The WFE’s 74 member CCPs and clearing services collectively ensure that risk takers post some USD 1.4 trillion (equivalent) of resources to back their positions, in the form of initial margin and default fund requirements. WFE exchanges are home to over 41,000 listed companies, and the market capitalization of these entities is over $137 trillion; around $198.5 trillion in trading annually passes through WFE members (at end-2025). 

The WFE is the definitive source for exchange-traded statistics and publishes over 350 market data indicators. Its free statistics database stretches back 50 years and provides information and insight into developments on global exchanges. The WFE works with standard-setters, policy makers, regulators and government organisations around the world to support and promote the development of fair, transparent, stable and efficient markets. The WFE shares regulatory authorities’ goals of ensuring the safety and soundness of the global financial system. 

With extensive experience of developing and enforcing high standards of conduct, the WFE and its members support an orderly, secure, fair and transparent environment for investors; for companies that raise capital; and for all who deal with financial risk. We seek outcomes that maximise the common good, consumer confidence and economic growth. And we engage with policymakers and regulators in an open, collaborative way, reflecting the central, public role that exchanges and CCPs play in a globally integrated financial system. If you have any further questions, or wish to follow-up on our contribution, the WFE remains at your disposal. ^[1] 

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^[1] Our EU Transparency Register number is 973382524675-69

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