SEC Weighs Plan to Let Tokenized Stocks Trade on Crypto Exchanges

Agency Explores Blockchain-Based Equities

The U.S. Securities and Exchange Commission is working on a proposal that would allow blockchain-registered versions of stocks to trade on cryptocurrency exchanges, according to a report from The Information. The plan, still at an early stage, would permit investors to buy and sell digital tokens representing shares in listed companies on approved platforms.

The move would extend tokenization — the process of creating blockchain-based assets that mirror traditional securities — into public equities. SEC Chair Paul Atkins has described tokenization as an “innovation” the regulator should advance. “We should be focused on how do we advance innovation in the marketplace,” Atkins said, arguing that tokenized assets could expand market access and lower transaction costs.

Investor Takeaway

Push From Exchanges and Market Players

Interest in stock tokenization has grown rapidly. Platforms including Robinhood and Kraken have launched tokenized stock products, while Nasdaq has sought SEC approval to list tokenized securities. Coinbase is also reported to be pursuing authorization to offer tokenized equities through its exchange.

According to industry tracker RWA.xyz, more than $31 billion in assets have been tokenized so far, but equities make up only around 2% of that figure. Their share has nearly doubled in the past 100 days, underscoring momentum in the segment. A Binance Research note compared the trend to the early days of decentralized finance in 2020–21, suggesting tokenized equities could be nearing an inflection point. Binance estimates that if 1% of global equities were tokenized, the market could surpass $1.3 trillion.

Industry Skepticism

Not all of Wall Street is convinced. In a July submission to the SEC’s Crypto Task Force, Citadel Securities warned that tokenized shares must succeed by delivering efficiency gains, not by exploiting gaps in oversight. “Tokenized securities must achieve success by delivering real innovation and efficiency to market participants, rather than through self-serving regulatory arbitrage,” the firm wrote.

Critics argue that regulatory arbitrage remains a risk, especially as crypto platforms seek to expand product lines amid intensifying scrutiny. Some industry officials also question whether trading tokenized shares on crypto exchanges will improve liquidity or simply create parallel markets.

Investor Takeaway

What’s Next for Tokenized Equities

The SEC’s willingness to consider tokenized stocks comes as regulators worldwide weigh how blockchain fits into traditional finance. Europe’s MiCA framework, already in force, has opened the door to tokenized bonds and funds. The U.S. push into equities could mark a broader shift if formal rulemaking proceeds.

For now, the SEC has not released a timeline. But with demand rising from exchanges and fintechs, and with more than $30 billion already tokenized globally, industry observers see momentum building. The coming months will show whether the agency can craft rules that balance innovation with investor protection.