The U.S. Securities and Exchange Commission (SEC) is advancing plans to bring traditional stock trading to the blockchain, allowing shares of companies like Apple, Tesla, and Nvidia to trade as digital tokens similar to cryptocurrencies. The initiative, backed by Nasdaq, Coinbase, and Robinhood, aims to modernize markets and expand access to equities. Nasdaq has already filed a rule change to permit tokenized trading of equities and ETPs, with a decision expected after the public comment period ends on October 14.
However, the plan faces strong resistance from Wall Street. Major financial institutions, including Citadel Securities, argue that tokenization could undermine their roles in trading and settlement. The World Federation of Exchanges (WFE) has also urged tighter regulation, warning that tokenized stocks could “mimic” equities without offering shareholder protections.
SEC Commissioner Hester Peirce emphasized that tokenized securities must still comply with existing laws, stating, “As powerful as blockchain is, it doesn’t change the nature of the asset.” Nasdaq echoed that view, proposing clear labeling and equal rights for tokenized shares.
Several major asset managers, including BlackRock and Franklin Templeton, have tested tokenized funds, but most such products are issued by third parties, complicating legal compliance. Despite these challenges, the push aligns with the SEC’s broader crypto-friendly agenda. Chair Paul Atkins recently called blockchain integration a “turning point” for U.S. markets during an SEC–CFTC roundtable, signaling growing regulatory support for merging traditional finance with blockchain technology.
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