Blockchain-based assets which provide exposure to equities could lead to "investor misunderstanding", as they typically do not make the buyer a shareholder in the underlying company, the European Union's securities watchdog said on Monday.

So-called tokenised stocks are a type of blockchain-based asset which are linked to the price of a share in a public company. Broker Robinhood (HOOD.O) has launched tokenised stocks in the EU while crypto exchange Coinbase (COIN.O) is also making a push into the nascent sector.​