SEC Greenlights Tokenized Stocks on Blockchain

The SEC has approved an 'innovation exemption' that allows tokenized US stocks to be traded on public blockchains without registering as national exchanges.

This move is seen as a significant step forward in making traditional finance assets available for trading on blockchain platforms, 24/7 and permissionlessly.

The exemption applies only to real tokenized stocks that carry full rights, including dividends and voting. Companies retain some power to object to their shares being tokenized and traded.

Robinhood and Coinbase had already announced plans to provide redemption and voting rights for their stock tokens, which aligns with the requirements of this exemption.