- The SEC is preparing to allow traditional stocks to trade as tokenized assets on blockchain platforms.
- Major companies, such as Galaxy Digital and Forward Industries, have already begun tokenizing their stocks on blockchains like Solana.
The U.S. Securities and Exchange Commission is in the process of permitting traditional stocks to trade on blockchain networks through tokenization. The move would help investors purchase and sell tokenized securities of listed firms on regulated cryptocurrency exchanges. This move represents a significant shift in how traditional financial markets may operate in the future.
The initiative will focus on real-world asset tokenization. Digital tokens on blockchain networks would represent stocks. These tokens would be directly linked to their underlying securities. Access to large companies such as Tesla and Nvidia via tokenized assets instead of conventional brokerage vehicles would be available to investors.
The Information reports that the proposal will permit the listing of tokenized equities on regulated cryptocurrency platforms. The proposal would establish a regulatory framework for blockchain-based securities trading within the pre-existing regulatory frameworks.
BREAKING: The SEC is reportedly moving to allow stocks to trade like crypto, where stocks would trade on-chain.
Under the plan, investors could buy tokens on crypto exchanges that represent shares of companies like Tesla or Nvidia.
— The Kobeissi Letter (@KobeissiLetter) September 30, 2025
Round-the-Clock Trading and Direct Market Access
The tokenized stocks would work in a different way compared to the conventional securities markets. Investors could trade assets continuously without being constrained by standard market hours. The blockchain system enables 24/7, 7-day-a-week transactions.
This system would enable retail investors to bypass traditional brokerage firms. Traders would be able to conduct business on Web3-native exchanges. The removal of the old intermediaries would help cut down on the costs and make it more accessible to individual investors.
Nasdaq has already submitted a rule change request to enable token trading of stock on its platform. The exchange will focus on upholding the trading standards and embracing blockchain technology to settle and execute the transactions.
Early Adoption and Corporate Interest
A number of firms have already started to consider the idea of stock tokenization. The first tokenized company on the Nasdaq is Galaxy Digital, which plans to tokenize its shares on Solana, and Forward Industries announced that it would tokenize its FORD shares on the blockchain. Such pioneers are indicators of an increase in corporate confidence in tokenization technology.
SharpLink declared its intentions to tokenize SBET stock on the Ethereum network, the first company to tokenize stock on the latter network. The variety of blockchain platforms being used implies that tokenization may support a variety of technical solutions.
Major cryptocurrency exchanges are preparing themselves for tokenized equity trading. Coinbase and Robinhood have offered to introduce tokenized equity trading to their offerings. Robinhood has begun to offer tokenized equities to customers in Europe already and is experimenting with the model in foreign markets.
The conventional financial institutions are not left behind. Earlier this year, BlackRock announced the establishment of a tokenization division. Involvement in the tokenization movement by the traditional financial actors also brings credibility.
