All articles tagged with #tokenized stocks
Crypto-linked stocks jumped after the SEC announced a five-year exemption allowing tokenized stocks to trade on approved platforms, creating a regulatory framework for blockchain-based versions of public securities; leaders included MSTR (~7%), MARA (~6%), COIN, GLXY and CRCL (~6%), with HOOD up ~3%.
The SEC issued a five-year temporary path for limited trading of tokenized U.S. stocks, a non-regulatory change designed to spur responsible innovation while keeping investor protections. Securitize, which holds about 9% of the tokenized market and recently went public, surged as much as 24% on the news as the broader tokenized-assets market climbs toward $38.5 billion, with Needham noting leadership will go to platforms with the widest institutional client base.
Nasdaq’s venture capital arm is investing $100 million in Payward, the parent of Kraken, to build the infrastructure and surveillance for tokenized equities and aim for a Q2 2027 launch; the deal expands a prior partnership to test Nasdaq Equity Tokens and will have Payward adopt Nasdaq’s market-surveillance technology across its venues as Kraken broadens from crypto into stocks and other assets, with token holders not owning the underlying shares and Kraken valued at about $21 billion.
The U.S. Securities and Exchange Commission is expected to release an innovation exemption that would create a framework for trading tokenized versions of public company shares, signaling a possible shift toward crypto-like securities in the stock market as the administration nudges ahead with crypto-friendly rules.
Crypto companies are rapidly launching tokenized stocks, which pose risks to investors and market stability due to lack of traditional protections and regulatory oversight, sparking concerns among regulators and Wall Street.
Nasdaq is seeking SEC approval to enable trading of tokenized stocks on its exchange, which could integrate blockchain technology into mainstream equity markets, potentially transforming trading, settlement, and market infrastructure while raising regulatory and issuer concerns.
Hester Peirce, head of the SEC's crypto task force, stated that digital versions of stocks, or 'tokenized' securities, are still subject to federal securities laws, emphasizing the need for market participants to comply with existing regulations.
Robinhood announced the launch of tokenized stock tokens for OpenAI and SpaceX, which OpenAI and Elon Musk have publicly disavowed, citing lack of involvement and the tokens not representing real equity. The move has sparked controversy over legal, regulatory, and transparency issues, especially since OpenAI is not publicly traded. The tokens are designed to give indirect exposure to private companies and are built on the Ethereum layer-2 network Arbitrum, raising questions about their viability and compliance in the U.S.
Robinhood's stock surged 12% after announcing new crypto-focused products including tokenized stocks, crypto futures, staking, and rewards, signaling its shift towards becoming a comprehensive financial platform with a strong emphasis on digital assets amid a booming crypto market.
Robinhood is expanding into crypto by developing its own blockchain based on Arbitrum and launching tokenized stocks for European users, with plans to support 24/7 trading, self-custody, and cross-chain asset bridging, alongside introducing perpetual swaps and crypto staking in the US.