SEC Receives Notifications from Three Firms Planning Tokenized Stock Trading

tokenized stock trading — The U.S. Securities and Exchange Commission has received notifications from three companies outlining their plans to operate trading platforms for tokenized stocks under a new regulatory exemption.

The SEC listed Tokenized Stock Venue, Perpetuals.com, and OKX as the entities that have submitted filings. The regulator noted that OKX, in partnership with Intercontinental Exchange, was the first to file its intent to launch a new platform named OKXICE. The filings follow a rule announced by the SEC in September that offers a five-year conditional exemption for platforms facilitating the trading of tokenized securities.

Proponents of tokenized stocks argue that using blockchain technology allows for 24/7 trading and could modernize aspects of traditional finance. The SEC clarified that inclusion on its list of notified firms does not constitute final approval and that each company must still meet all requirements under the rule.

This regulatory push for tokenized securities occurs amidst a broader institutional embrace of blockchain rails, with firms like BlackRock and Franklin Templeton having previously tokenized money market funds. An earlier approval from S&P allowed a platform to list a derivative contract for the index on a decentralized exchange.