SEC greenlights tokenized stock trading

The Securities and Exchange Commission announced a temporary path for limited trading of tokenized publicly traded U.S. stocks. The order will remain in force for five years.

“The Innovation Exemption is designed to resolve challenges that have prevented responsible innovation from taking root in the United States”

What tokenization actually does

Tokenization registers ownership rights for real-world assets like stocks and bonds on a digital decentralized ledger. It enables trading around the clock, giving tokenized securities an edge over traditional counterparts.

Securitize stock jumps on the news

Securitize shares surged 14% Thursday, reaching up 24% at peak, after the SEC announcement. The company became the first major tokenization firm to go public in the U.S. in early July.

Securitize controls 9% of market

Securitize holds roughly 9% of the tokenized market by assets under management. Analysts expect the company to benefit from a boom in real-world asset tokenization.

Tokenized assets hit $38.5 billion

The combined market value of tokenized assets reached $38.51 billion as of Thursday, up more than 70% over the past year. The sector is experiencing rapid growth as institutional investors enter the space.