"Robinhood CEO Vlad Tenev memorably described tokenized stocks as an unstoppable "freight train." The arrival of that train will depend on how fast regulators can supply a legal framework, but Tenev's basic premise is sound. The more interesting question is which firms will lead this coming wave of disruption, and which will be left out."
"According to Sebastian Pedro Bea, a former BlackRock executive who is now CIO at crypto firm ReserveOne, the emerging world of tokenized stocks is being led by offshore players and by U.S.-based "compliant disruptors." Bea includes in this category the likes of Securitize, Superstate and Figure, which have little in the way of trading volume, but that are laying the groundwork to allow Fortune 500 companies to issue their shares on-chain."
"Bea also pointed to leading offshore players Kraken and Ondo, which are offering a very different type of blockchain-based stocks. Namely, these firms are using special purpose vehicles to purchase large quantities of stocks like Apple and Tesla, and selling tokens that provide a legal claim to the stock. These offerings are basically derivatives that don't provide the full advantages of blockchain, but their tokenized wrappers mean trades can be settled instantly."
Blockchain-based stock trading represents the next major disruption in crypto, following innovations like Bitcoin and stablecoins. NYSE and NASDAQ recently endorsed this development, signaling mainstream acceptance. Two distinct approaches are emerging: U.S.-based compliant disruptors like Securitize, Superstate, and Figure are enabling Fortune 500 companies to issue shares on-chain, streamlining corporate activities including dividend payments, proxy voting, and trade settlement. Offshore players like Kraken and Ondo use special purpose vehicles to purchase stocks and issue tokens representing legal claims, enabling instant settlement through derivative-like structures. While current market size remains modest at approximately $2 billion, regulatory frameworks will determine adoption speed and which firms lead this transformation.
#tokenized-stocks #blockchain-trading #financial-innovation #regulatory-framework #digital-securities
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]