SEC's Tokenized Stock Rule Boosts HOOD, COIN, CRCL Stocks

The SEC has opened the door to tokenized stock trading by creating a regulatory path for certain trading platforms to offer tokenized U.S. stocks. This five-year Innovation Exemption allows trading platforms and liquidity providers to offer tokenized stocks, as long as they meet the SEC's requirements.

Tokenized stocks represent ownership of real stocks but can be traded on a blockchain. Investors would still get important shareholder rights, such as dividends and voting rights. Companies can also choose to object to having their shares offered in tokenized form.

Analysts at Goldman Sachs and Citizens believe that Coinbase, Robinhood, and Circle could benefit from the SEC's new exemption. According to Goldman Sachs, Coinbase is already offering tokenized stocks with features such as shareholder rights and dividends tied to the underlying shares.