The US Securities and Exchange Commission (SEC) has reportedly developed a plan to allow versions of the registered blockchain to trade in cryptocurrency exchanges-a step to soak a significant step toward integrating digital asset technology into the traditional financial system.
The proposal, which is still in the early stages, will allow investors to buy and sell stock tokens – Digital representations of shares with companies that have been publicly exchanged – on approved crypto platforms, information reported Tuesday, people are mentioned familiar with this.
The initiative reflects the growing openness of tokenization regulation, the process of creating blockchain-based tokens that mirrors the ownership of traditional properties.
SEC Chair Paul Atkins recently described Tokenization as a “change” the agency should seek to move forward, not tighten. Regulators should “be focused on how we promote a market change,” he said, noting that tokenized properties can improve access to financial markets and reduce costs.
Interest in stock tokenization has accelerated in recent months. Platforms such as robinhood and Kraken began to offer tokenized stock products. At the same time, NASDAQ has requested the SEC approved For a change in the rule that will allow it to list the tokenized securities in its exchange.
Crypto Exchange Coinbase also reported looking for the SEC approved to offer tokenized equities.
However, the SEC’s apparent willingness to embrace blockchain -based equities has drawn the pushback from traditional financial companies. In a July note at the agency’s Crypto Task Force, Citadel Securities warned regulators To ensure that tokenization delivers real market benefits rather than exploiting regulatory gaps.
“Tokenized securities should achieve success by delivering real change and efficiency to market participants, rather than by self-serving regulatory arbitrage,” Citadel wrote.
Magazine: Can Robinhood or Kraken be truly decentralized?
The stock tokenization gets land
Tokenized stocks are emerging as one of the next major growth areas within the wider tokenization market. While early financial tokenization efforts are focused largely Private Credit and US Treasury BondsStocks are starting to meet.
According to industry data, more than $ 31 billion in properties have been -tokenized, but tokenized equivalent current accounts for only 2% of the total. However, their value has been nearly double over the past 100 days, which has signed a speedy adoption.
A Recent Research Report in Binance Compared to the rise of tokenized stocks in the early days of the Defi Boom in 2020 and 2021. Researchers suggested that, following recent growth, the tokenized even “may be close to a major point of collapse in the broader transition to the financial hybrid.”
Binance Research estimates the market for tokenized stocks can exceed $ 1.3 trillion if only 1% of global equities have switched to the blockchain.
Magazine: Robinhood’s tokenized stocks provoked a legal hornet’s nest
