SEC explores blockchain-registered stocks as tokenization momentum builds: report
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SEC eyes plan to allow blockchain-based stock trading on approved crypto platforms. Nasdaq, Coinbase, and others push for tokenized equities as adoption accelerates. Tokenized stock market could hit $1.3T if 1% of global equities move to blockchain. The US Securities and Exchange Commission (SEC) is reportedly developing a proposal to allow blockchain-registered versions of stocks to trade on cryptocurrency exchanges, signaling a potential breakthrough in the integration of digital asset technology into traditional markets. The move, if approved, would permit investors to buy and sell tokenized shares of publicly traded companies on regulated crypto platforms, according to The Information. While the plan remains in its early stages, it underscores the growing regulatory openness toward tokenization — the process of creating blockchain-based tokens that mirror ownership of conventional assets. Regulators signal openness to innovation SEC Chair Paul Atkins recently described tokenization as an “innovation” the agency should promote rather than restrict. “We should be focused on how do we advance innovation in the marketplace,” Atkins said, suggesting that tokenized assets could enhance accessibility to financial markets while lowering costs. The initiative comes amid increasing industry momentum. Nasdaq has filed for SEC approval of a rule change that would allow it to list tokenized securities, while Coinbase is reportedly seeking regulatory clearance to offer tokenized equities on its platform. Retail platforms such as Robinhood and Kraken have already begun rolling out tokenized stock products to users. These developments highlight a broader shift among regulators and market operators toward embracing blockchain technology in securities markets. However, significant questions remain about market structure, investor protections, and oversight as tokenization moves closer to the mainstream. Pushback from traditional finance The SEC’s apparent willingness to explore tokenized equities has drawn criticism from established financial institutions. In a July letter to the agency’s Crypto Task Force, Citadel…
