SEC Proposal Paves Way for Tokens as Proof of Ownership

The US Securities and Exchange Commission (SEC) has proposed a revision of its rules for registered transfer agents, allowing them to maintain the official register of shareholders on a blockchain.

This change would enable tokenized stocks to be considered proof of ownership rather than just a digital wrapper.

Tokenized stocks are tokens on a blockchain whose value is tied to the price of a real existing share. They differ from security tokens, which are issued directly by companies and have no underlying asset.

The proposal does not change the fact that tokenized stocks are claims against the issuer, rather than ownership itself. The token tracks the share price but remains a product in its own right.