#secgrantsinnovationexemptionfortokenizedstocks
Huge news regarding digital assets! The wall of traditional funding has finally been broken!
The U.S. Securities and Exchange Commission (SEC) has launched a new 5-year framework called the “Innovation Exemption,” allowing trading of tokenized U.S. equities onchain! Here’s what it means for the industry:
24/7 trading and instant settlement: Thanks to blockchain technology, you can now trade traditional stocks outside normal market hours
Real ownership: Blockchain tokens must grant investors economic rights and voting rights similar to those granted to traditional shares. This includes any dividend distributions. Synthetic products that only track stock prices are not allowed.
AMM mechanisms and liquidity pools: Qualified entities may be able to use automated market makers (AMMs) and permissioned liquidity pools to trade these tokenized securities onchain. Markets will not need to overcome many of the hurdles required under current securities laws, but they will still need to register as a securities exchange.
The exemption is only available for a limited time and is subject to limits on trading volume and stock tokens. In addition, if any company is tokenized, it can be challenged within 30 days of that happening
Please stay tuned
#stocks #TokenizationOfRWA #RWA
$AAPL
Huge news regarding digital assets! The wall of traditional funding has finally been broken!
The U.S. Securities and Exchange Commission (SEC) has launched a new 5-year framework called the “Innovation Exemption,” allowing trading of tokenized U.S. equities onchain! Here’s what it means for the industry:
24/7 trading and instant settlement: Thanks to blockchain technology, you can now trade traditional stocks outside normal market hours
Real ownership: Blockchain tokens must grant investors economic rights and voting rights similar to those granted to traditional shares. This includes any dividend distributions. Synthetic products that only track stock prices are not allowed.
AMM mechanisms and liquidity pools: Qualified entities may be able to use automated market makers (AMMs) and permissioned liquidity pools to trade these tokenized securities onchain. Markets will not need to overcome many of the hurdles required under current securities laws, but they will still need to register as a securities exchange.
The exemption is only available for a limited time and is subject to limits on trading volume and stock tokens. In addition, if any company is tokenized, it can be challenged within 30 days of that happening
Please stay tuned
#stocks #TokenizationOfRWA #RWA
$AAPL
