SEC Blockchain Stock Plan Brings Tokenized Shares to Crypto

The U.S. Securities and Exchange Commission (SEC) is considering a plan to let blockchain-based stocks to trade on crypto exchanges. The news was officially reported by The Information and shared via an X post by Cointelegraph. This could be a huge step for tokenized assets. Investors may soon buy and sell shares digitally, using blockchain technology instead of traditional stock exchanges.

🇺🇸 ​​LATEST: The SEC is exploring a plan to allow blockchain-based versions of stocks to trade on crypto exchanges, per The Information. pic.twitter.com/wWAmfKCpEr

— Cointelegraph (@Cointelegraph) October 1, 2025

What the SEC Is Proposing

The SEC wants to let approved crypto platforms offer “stock tokens.” These tokens represent real shares of public companies. The idea is to bring blockchain technology into the traditional financial system. Tokenization turns regular assets into digital tokens you can own.

This move shows that regulators are being more and more open to innovation in digital finance. It could help bridge the gap between traditional and digital markets.

How the Industry Reacts

Many industry leaders see tokenization as positive. SEC Chair Paul Atkins called it an innovation that should be encouraged. He said tokenized assets can make markets more accessible and reduce the costs.

Some crypto exchanges are already looking into stock tokens. Platforms like Robinhood and Kraken offer tokenized stock products. Nasdaq has requested SEC approval to list tokenized securities and Coinbase is also asking permission to offer tokenized equities.

These steps show the rising interest in bringing traditional finance and crypto closer together.

Concerns from Traditional Finance

But not everyone is fully convinced. Traditional financial firms have raised some worries about risks. Citadel Securities wrote to the SEC asking regulators to make sure tokenized stocks give real benefits to the market. 

They warned that these products should not take advantage of any gaps in the rules. Tokenized stocks must offer genuine innovation and efficiency for investors. Regulators will need to carefully go through the rules to keep the market safe.

Potential Benefits of Tokenized Stocks

• 24/7 Trading: Stock tokens could trade around the clock, giving investors more flexibility.
  
• Faster Settlements: Blockchain can make the settlement process faster, reducing the delays and fees.
  
• Global Access: Anyone in the world could invest in U.S. stocks without traditional barriers.
  

 These benefits could make financial markets faster and easier for everyone to use.

Overcoming Risks in Tokenized Stock Trading

A lot of challenges still remain. Regulators must give clear rules for tokenized stocks. Investor protection and market integrity are the top priorities. There is also a need to prevent manipulation and make sure of transparency. Careful monitoring will show whether tokenized stocks can succeed without risk.

How Tokenized Stocks Could Change Investing

The SEC’s blockchain stock plan shows a huge step toward merging blockchain and traditional finance. If approved, the tokenized stocks could change how people invest in public companies.

It could make trading faster, cheaper and more accessible. More investors could join the market, and traditional finance might start using blockchain faster. This shows how digital innovation can make the financial system better while staying safe and following rules.