SEC Moves Toward Tokenized Stock Trading on Crypto Exchanges
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SEC explores tokenized stock trading on crypto exchanges, signaling a major step toward merging blockchain technology with traditional financial markets. The US Securities and Exchange Commission is reportedly preparing to allow blockchain-based versions of stocks to trade. According to The Information, the proposal would allow for the listing of tokenized equities on approved cryptocurrency platforms. If adopted, this plan would be a historic milestone towards the convergence of digital assets with mainstream finance. Nasdaq and Companies Push Tokenized Stock Adoption At an early stage, the SEC proposal envisions stock tokens to represent shares in public companies. They could be purchased and sold directly on regulated crypto exchanges. Nasdaq has already filed a rule change to allow for tokenized stock trading on its platform. The exchange aims to bring order to trading and settlement by mirroring traditional securities, to foster trust and reliability. A number of companies are already testing out tokenization. Galaxy Digital is the first Nasdaq-listed company to tokenize its stock on Solana. Forward Industries quickly followed suit by announcing its intention to tokenize its FORD shares on the same blockchain Related Reading: SBI Ripple Asia Partners with Tobu Top Tours for Tokenized Payment System | Live Bitcoin News Meanwhile, SharpLink announced plans to tokenize SBET stock on the Ethereum network, becoming the first firm to do so on the latter network. These moves demonstrate that tokenization is being viewed as a forward-looking financial innovation by businesses. Top crypto exchanges are pushing for quicker approval. Coinbase and Robinhood have provided plans for adding tokenized equity trading to their platforms. Robinhood has already started tokenizing equities and offering them to European customers. Likewise, a synthetic stock token has been trialed in foreign markets by the company Kraken. These early adoptions are a sign of increasing confidence in the practicability of…
Filed under: News - @ October 1, 2025 4:30 am