The U.S. Securities and Exchange Commission is reportedly working on a plan to let blockchain versions of stocks trade on crypto exchanges.
According to a report from The Information, the idea is still early but could open stock markets to 24/7 blockchain trading. The move comes as demand for tokenization rises and as big firms push for quicker adoption.
The plan would allow shares of public companies to be turned into digital tokens. These tokens could then be traded on approved platforms like Coinbase or Robinhood.
“We should be focused on how we advance innovation in the marketplace,” SEC Chair Paul Atkins said, describing tokenization as something regulators should support.
Platforms are already moving ahead. Robinhood has introduced tokenized stock products for its European users, while Coinbase is lobbying regulators for U.S. approval. Nasdaq has also asked the SEC to allow tokenized securities on its exchange.
Meanwhile, Galaxy Digital has tokenized its stock on Solana, and SharpLink has announced tokenization of its stock on Ethereum.
The push has also raised caution. Citadel Securities urged the SEC to be careful in its approach. In a note to the agency, it wrote, “Tokenized securities must achieve success by delivering real innovation and efficiency to market participants, rather than through self-serving regulatory arbitrage.”
Despite the warnings, momentum is building. Data from RWA shows that more than $31 billion worth of assets have been tokenized. Stocks only make up about 2% of that, but their value has nearly doubled in just 100 days.
Meanwhile, Binance analysts say the market for tokenized equities could top $1.3 trillion if even 1% of global stocks move on-chain. The SEC’s meetings with the New York Stock Exchange and its Crypto Task Force show how seriously the agency is considering the shift.
While questions remain, this move shows that traditional markets and blockchain are beginning to work together.
Also Read: Cronos Partners with AWS to Drive Tokenization and RWA Growth
