SEC Paves the Way for Tokenized Stocks on Public Blockchains
The U.S. Securities and Exchange Commission (SEC) has issued a landmark five-year order allowing tokenized stocks to trade on public, permissionless blockchains like Solana without requiring venues to register as stock exchanges.
This new kind of trading venue is termed Tokenized Securities Venues, enabling trading via automated market maker (AMM) pools and bypassing traditional exchange requirements. Transactions settle directly onchain, allowing for features such as 24/7 trading, fractional share ownership, and payment in stablecoins.
Solana's architecture has already proven compatible with the SEC's requirements, hosting more than half of all tokenized equity trading volume by 2026. The SEC order mandates three conditions for compliance: smart contracts must be auditable and public; participants must be permissioned; and the tokens must represent actual shares with full rights.
The SEC's move reflects a broader effort to modernize capital markets, testing a supervised path for tokenized securities while soliciting public feedback. The exemption is temporary, with volume caps in place and a clear invitation for industry participants to weigh in on permanent rulemaking.