SEC Chairman Atkins said on CNBC on 9/29: “I hope the stock market moves onto the blockchain.”
This isn’t just talk.
On 9/17, the SEC opened a 5-year pilot window for tokenized stocks: eligible “tokenized securities trading venues” don’t need to register as exchanges, and can use smart contracts and automated market-making on a public chain.
But the opening is very narrow: the top tier with the best liquidity can include no more than 75 stocks, and the trading volume of each cannot exceed 0.25% of the daily average; the second tier can include no more than 250 stocks, capped at 2.5%.
Tokenized stocks must preserve voting rights and dividend rights; “synthetic stocks” that only track prices and do not represent true ownership are not covered by the exemption.
For comparison with the current situation: the total market size of on-chain tokenized stocks is about $3.16 billion, and the number of holders rose 63% over the past month to 4.01 million.
The regulatory approach is to first let a small portion of trading run on-chain, and then tighten things if problems arise. The most direct beneficiaries are the issuers and platforms that are already doing compliant tokenization.
$ONDO
This isn’t just talk.
On 9/17, the SEC opened a 5-year pilot window for tokenized stocks: eligible “tokenized securities trading venues” don’t need to register as exchanges, and can use smart contracts and automated market-making on a public chain.
But the opening is very narrow: the top tier with the best liquidity can include no more than 75 stocks, and the trading volume of each cannot exceed 0.25% of the daily average; the second tier can include no more than 250 stocks, capped at 2.5%.
Tokenized stocks must preserve voting rights and dividend rights; “synthetic stocks” that only track prices and do not represent true ownership are not covered by the exemption.
For comparison with the current situation: the total market size of on-chain tokenized stocks is about $3.16 billion, and the number of holders rose 63% over the past month to 4.01 million.
The regulatory approach is to first let a small portion of trading run on-chain, and then tighten things if problems arise. The most direct beneficiaries are the issuers and platforms that are already doing compliant tokenization.
$ONDO