ESMA warned growing crypto links could transmit shocks into traditional finance as market connections increase.Tokenized equity value rose from €0.3 billion to €1.9 billion within eighteen months, ESMA reported.Wrapped stock tokens may fragment liquidity because blockchain transfers often do not convey legal ownership.Prediction volumes reached $12 billion on Polymarket and $8.8 billion on Kalshi during Q4 2025.ESMA said pseudonymous trading can hinder detection of insider dealing, wash trades, and coordinated manipulation.