Three companies have notified the SEC that they plan to operate tokenized securities venues under a new rule. The regulator said that being on its list does not mean a firm meets every requirement.
Tokenized Stock Venue, Perpetuals.com and OKX have submitted plans to operate venues that allow trading of tokenized stocks, the SEC said in a Wednesday announcement. The notices follow a new rule covering tokenized securities venues.
OKX and ICE filed first
Crypto exchange OKX was the first to file with the regulator, together with the Intercontinental Exchange, to debut tokenized securities trading on a new platform, OKXICE. The SEC said in September it was offering a five-year exemption to platforms that facilitate trading of tokenized stocks.
However, the SEC said Wednesday that appearing on the list does not necessarily mean the firms meet all the requirements for the rule. Meanwhile, regulators are pushing ahead with oversight of the crypto space even though lawmakers blocked major digital asset legislation in September.
Regulator shifts its stance on crypto
Tokenized stocks are the latest example of firms wanting to use the underlying technology of Bitcoin to upgrade traditional finance. By putting stocks on the blockchain, traders can operate 24/7, according to proponents.
SEC Chair Paul Atkins has said the regulator wants to update how it watches over securities. He wants to "modernize them in the age of blockchain and crypto assets."
The tone has changed since the Biden administration, when the SEC was hostile toward the crypto industry and hit companies including Coinbase and Kraken with lawsuits. Under President Donald Trump, who campaigned on helping the crypto space, Trump has signed a number of laws and executive orders aimed at helping digital assets.
Traditional finance firms such as BlackRock and Franklin Templeton have used blockchain rails to tokenize money funds. In January, the S&P 500 gave Trade[XYZ] the green light to debut a new derivative contract on decentralized exchange Hyperliquid, letting traders trade the stock index 24-7.
Source: Bitcoin Magazine
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