The US Securities and Exchange Commission (SEC) is reportedly considering a plan to permit blockchain-registered versions of stocks to trade on cryptocurrency exchanges. The initiative would represent a major step toward integrating digital asset technology into traditional financial markets.
The proposal, still in its early stages, would enable investors to buy and sell stock tokens digital representations of publicly traded shares on approved crypto platforms, according to The Information, citing sources familiar with the matter.
SEC Chair Paul Atkins described tokenization as an “innovation” the agency should promote rather than restrict. He emphasized that tokenized assets could improve market access and reduce trading costs, reflecting growing regulatory openness to blockchain-based financial instruments.
Growing interest in tokenized equities
Interest in tokenized stocks has surged in recent months. Platforms like Robinhood and Kraken have started offering tokenized stock products, while Nasdaq has sought SEC approval to list tokenized securities on its exchange. Coinbase is also reportedly pursuing SEC permission to provide tokenized equities.
Despite this momentum, some traditional finance companies have voiced caution. In July, Citadel Securities advised the SEC’s Crypto Task Force to ensure tokenization delivers genuine market benefits and does not exploit regulatory gaps. Tokenized securities must achieve success by delivering real innovation and efficiency to market participants, rather than through self-serving regulatory arbitrage.
Tokenized stocks as a growing market segment
Tokenized stocks are emerging as a key growth area within the broader tokenization market. While initial tokenization efforts have focused on private credit and US Treasury bonds, equities are beginning to gain traction.
Industry data indicates that over $31 billion in assets have been tokenized, with equities representing about 2% of that total. Their value has nearly doubled in the past 100 days, signaling accelerating adoption. Binance Research compared the trend to the early DeFi boom in 2020 and 2021, suggesting tokenized equities could be approaching a tipping point in the transition toward hybrid finance. Analysts estimate the market for tokenized stocks could surpass $1.3 trillion if even 1% of global equities are moved onto the blockchain.