S&P Dow Jones Indices is negotiating with major exchanges and DeFi protocols to introduce tokenized versions of its benchmarks. Stephanie Rowton, the director of US equities, emphasized that the firm is carefully selecting platforms that uphold standards of transparency and regulatory compliance. This initiative comes as institutional interest in tokenized products grows, with S&P DJI aiming to bridge traditional finance and decentralized finance through innovative solutions. The firm has already licensed the S&P 500 for tokenized funds, generating increased interest from traditional and digital investors. Rowton pointed out that tokenized indexes could enhance market access and liquidity while offering investment strategies like fractional ownership. Despite concerns of tokenization undermining its traditional licensing operations, Rowton sees it as a complementary innovation that opens new avenues for index investing. The firm is also considering tokenizing other significant benchmarks, including the Dow Jones Industrial Average, in response to market demand.

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