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SEC Considers Letting Tokenized Stocks Trade on Crypto Exchanges

The US Securities and Exchange Commission (SEC) is exploring a bold plan. It could let blockchain-based versions of company stocks trade on crypto exchanges. That means investors might soon buy stock tokens the same way they buy Bitcoin.

These stock tokens would represent shares in publicly traded companies. The idea is called tokenization — turning real-world assets into digital tokens on a blockchain.*

SEC Chair Paul Atkins called tokenization an “innovation.” He said regulators should focus on helping markets advance, not slowing them down. Tokenized assets could make investing cheaper and open doors for more people.

Big players are already testing the waters. Robinhood and Kraken are offering tokenized stock products. Nasdaq wants SEC approval to list them. Coinbase is also seeking a green light to trade tokenized equities.

Not everyone is cheering. Citadel Securities warned that tokenization must bring real efficiency, not just regulatory loopholes. They want proof it helps investors.

The tokenized stock market is small but growing fast. Only 2% of tokenized assets are equities today. But their value nearly doubled in the last 100 days. A Binance report says the market could reach $1.3 trillion if just 1% of global stocks go on-chain.

*Tokenization = creating digital tokens on a blockchain that represent ownership of a real-world asset like a stock, bond, or property.

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Written by 365Crypto

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