Regulated Tokenized Stock Venues on Track to Launch Next Quarter

The Securities and Exchange Commission (SEC) has announced that the first regulated venues for trading tokenized U.S. stocks could launch as early as next quarter, according to senior officials.

Taylor Lindman, chief counsel of the SEC's Crypto Task Force, said in a joint interview with Commissioner Hester Peirce that interested firms will begin publishing operating notices required under a five-year conditional relief order issued last week. These notices will indicate which companies plan to run Tokenized Securities Venues (TSVs).

Lindman estimated that it may take some time before the first firms file their notices, but they should be published in the next quarter. The SEC's Innovation Exemption allows eligible platforms to facilitate permissioned trading in tokenized versions of U.S.-listed National Market System stocks through automated market makers and liquidity pools on public blockchains.