Three Companies Have Notified the SEC of Intention To Start Tokenized Stocks Trading
Three companies have notified the U.S. Securities and Exchange Commission of their plans to operate tokenized securities venues under a new rule.
The SEC announced on Wednesday that Tokenized Stock Venue, Perpetuals.com, and crypto exchange OKX have all submitted plans to operate platforms for tokenized stocks. Along with the Intercontinental Exchange, OKX was the first to file with the regulator to debut tokenized securities trading on a new platform called OKXICE.
Regulatory Shift
In September, the SEC offered a five-year exemption to platforms facilitating tokenized stocks trading. This represents a significant change from the previous Biden administration, which was hostile toward crypto and filed lawsuits against major companies like Coinbase and Kraken.
Market Evolution
Tokenized stocks represent firms utilizing Bitcoin's underlying technology to upgrade traditional finance. By putting stocks on the blockchain, proponents argue traders can operate 24/7. Traditional finance titans like BlackRock and Franklin Templeton have already used blockchain rails to tokenize money funds.
In January, the S&P 500 approved crypto platform Trade[XYZ] to debut a new derivative contract on decentralized exchange Hyperliquid, enabling 24/7 trading of the stock index. The SEC emphasized that being on the list doesn't guarantee compliance with all requirements.
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