SEC Advances Tokenization of TradFi Stocks for On-Chain Trading

The U.S. Securities and Exchange Commission is laying the groundwork for a seismic shift in equity markets. By enabling tokenization of real-world assets like Tesla and Nvidia shares, the regulator could democratize access to traditional finance through blockchain infrastructure.

This initiative WOULD allow retail investors to trade stock tokens around the clock on Web3 platforms, bypassing conventional brokerages and market hours. The move signals growing institutional recognition of blockchain's potential to reshape capital markets infrastructure.

While operational details remain undisclosed, the SEC's direction suggests accelerating convergence between traditional finance and decentralized systems. Market participants anticipate this could drive significant liquidity into crypto-native exchanges while challenging legacy settlement systems.