TLDR
- The SEC plans to enable stock trading on-chain through the tokenization of real-world assets.
- Investors will be able to access major TradFi stocks like Tesla and Nvidia through Web3-native platforms.
- This shift will allow retail investors to bypass traditional brokerages and trade 24/7.
- The SEC’s initiative could reshape stock trading by offering greater flexibility and market access.
- The rollout of tokenized stocks is expected to occur quickly, with further details anticipated soon.
The SEC plans to allow stock trading to shift on-chain through tokenization of real-world assets (RWAs). This initiative would enable retail investors to bypass traditional financial systems and access stocks in a Web3-native environment. The move, though still in its early stages, could redefine stock trading and crypto investment.
SEC’s Efforts to Tokenize TradFi Stocks
The SEC intends to allow tokenized RWAs, which would directly link stock values to traditional financial (TradFi) assets. This includes major stocks such as Tesla and Nvidia, as well as other companies within the tech sector. Through this mechanism, crypto investors would gain easier access to stocks outside regular market hours.
A shift to Web3-native exchanges could help bypass traditional market intermediaries, such as brokerages. Investors could freely trade stock tokens on the blockchain, 24/7. However, the SEC has not disclosed whether this will initially apply to a few stocks or be more widespread.
BREAKING: The SEC is reportedly moving to allow stocks to trade like crypto, where stocks would trade on-chain.
Under the plan, investors could buy tokens on crypto exchanges that represent shares of companies like Tesla or Nvidia.
— The Kobeissi Letter (@KobeissiLetter) September 30, 2025
The Broader Impact of Tokenizing TradFi Assets
The push to tokenize traditional stocks signals a significant shift in financial markets. By allowing stock trading on-chain, the SEC could grant crypto investors new opportunities to invest in well-known assets. Web3-native platforms will make stock trading more accessible and flexible.
Some financial giants, like BlackRock, have already experimented with tokenizing RWAs, primarily through ETFs. The SEC’s broader plan could extend beyond these limited experiments and offer a range of on-chain products. The initiative would give investors more freedom in how they interact with financial markets.
Although details remain unclear, the SEC aims to roll out the tokenized stock trading quickly. This move reflects growing political pressure to adopt pro-crypto policies, especially given the interest from the current administration.
