SEC Clears Path for Tokenized Stock Trading, Boosts Crypto Revenue
The Securities and Exchange Commission (SEC) has granted a five-year exemption to allow certain crypto companies to offer tokenized versions of stocks for trading.
This development is expected to boost revenue for major players in the industry, including Coinbase Global and Robinhood Markets. The SEC's ruling will enable these exchanges to tokenize traditional assets, allowing them to be traded 24/7 with rapid settlement times.
The market for tokenized traditional assets is estimated to expand from around $40 billion today to approximately $2.3 trillion by 2030, according to consulting firm Oliver Wyman. As of September 28, all tradeable tokenized stocks in existence were worth $3.2 billion, up from $368.5 million a year ago.
Roznhold has the upper hand in terms of revenue generation, with its tokenized assets worth $148.8 million as of September 28, while Coinbase's stock tokens are valued at $8.4 million. However, Coinbase is well-positioned to profit from tokenization, especially since its product fits the new rules more closely.