Tokenized U.S. Stocks to Trade 24/7 on Blockchain
The U.S. stock market is taking a step towards crypto rails with the launch of a tokenized securities platform by OKXICE, a joint venture between OKX and NYSE parent Intercontinental Exchange ICE. This move will allow for 24/7 trading of U.S. stocks, with over 60 listed companies initially available, including the Magnificent 7. Their shares will become tokens that trade on the blockchain via a liquidity pool, offering the same benefits as equities, such as dividends and voting rights.
According to Ryan VanGrack, Coinbase COIN Vice Chair, 'Tokenization is the biggest upgrade to financial infrastructure since Wall Street ditched paper for electronic trading.' He added, 'It's no longer a question of whether tokenization will reshape finance, it's a question of where.' The tokenization of real-world assets can lead to faster settlement times, access from anywhere in the world, and enhanced operational efficiency. However, there are also concerns about fragmented markets, price dislocation, and regulatory safeguards.
The SEC has issued an order to help the rollout of tokenized stocks following the collapse of the Clarity Act in Congress. The order provides a five-year window for new market innovations, giving the Commission time to evaluate rulemaking and the impacts of new standards. The innovation exemption is seen as a step towards pulling the financial system into the 21st century.