Shares of Securitize climbed sharply on Thursday following an announcement by the Securities and Exchange Commission (SEC) that permits the limited trading of tokenized publicly traded U.S. stocks on select platforms. The company’s stock rose as much as 24% during the day before settling at a gain of roughly 15%.
The regulatory framework, introduced earlier in the day, establishes a temporary pathway for these digital securities. While the order does not constitute a permanent change to federal regulations, it will remain in effect for five years. SEC Chair Paul Atkins described the move as an “Innovation Exemption” aimed at fostering responsible innovation within the United States while maintaining strict investor protections and market integrity standards.
Tokenization involves recording ownership rights of real-world assets, such as stocks and bonds, on a decentralized digital ledger. This technology enables round-the-clock trading, offering a significant advantage over traditional securities that are restricted to standard market hours.
Securitize, which became the first major tokenization firm to list on a U.S. stock exchange in early July, is well-positioned to benefit from the development. According to Needham Securities, the company controls approximately 9% of the tokenized market by assets under management. The firm has secured infrastructure partnerships with major entities including Computershare and the NYSE, and has launched funds in collaboration with asset managers such as BlackRock, Apollo, and KKR.
Data from RWA.xyz indicates that the total market value of tokenized assets reached $38.51 billion by Thursday afternoon, reflecting a year-over-year increase of more than 70%. Needham analyst John Todaro initiated coverage of Securitize with a buy rating, noting in a recent report that long-term leaders in the space will likely be platforms capable of securing a broad base of institutional customers.
I wish they clarified if this applies to individual retail investors or just qualified institutions. A bit unclear on accessibility.
It’s interesting to see BlackRock and KKR already involved. This proves institutional interest is real, not just hype.
Does this mean I can trade Apple stock at 3 AM? The 24/7 aspect is genuinely game-changing for retail investors.
15% jump feels a bit excessive for a five-year pilot program. I’m skeptical about the long-term sustainability here.
This is a massive signal from the SEC. Finally, some pragmatic regulation that doesn’t stifle innovation.