What happened? The SEC is moving to let U.S. stocks trade as tokenized assets on blockchains.
The agency is reportedly developing rules to allow shares to be issued and traded like crypto tokens, and it’s already talking with exchanges and market participants. Nasdaq has filed to permit tokenized listed equities, and crypto platforms such as Coinbase and Robinhood are pushing to offer tokenized stocks. At the same time, big banks, brokerages, and clearinghouses are pushing back and SEC officials stress tokenized securities would still have to follow securities laws.
Who does this affect? This could change how investors, exchanges, brokers, clearinghouses, and issuers interact with the market.
Retail and institutional investors might get easier access and new trading options through crypto-friendly platforms and tokenized products. Exchanges, crypto firms, and fintechs could gain market share, while traditional market makers, custodians, and clearinghouses could see revenue and role pressure. Companies issuing shares and regulators will also be impacted because tokenization raises questions about shareholder rights, custody, and how existing systems like the DTC would handle settlement.
Why does this matter? It could reshape market structure by cutting settlement times and costs, boosting competition, but also creating regulatory and operational risk.
Tokenization could speed settlement, lower fees, and enable new venues that tighten spreads and expand access, benefiting many investors. Yet the shift risks disrupting incumbent revenues, causing short-term volatility, and creating legal and custody challenges if rules aren’t clear. If regulators, exchanges, and clearinghouses align the rules and infrastructure, tokenized stocks could widen liquidity and change how capital markets operate long term.