TLDR
- Wintermute recommends clearer guidelines for tokenized securities to promote liquidity and DeFi adoption.
- Coinbase and Kraken are working to secure broker-dealer licenses to offer tokenized stock trading in the U.S.
- SEC’s guidance on tokenized securities could accelerate market growth and improve regulatory clarity.
- Tokenized RWA market reaches $28 billion, with exchanges preparing for broader adoption of digital securities.
Wintermute Trading, a prominent algorithmic crypto trading firm, has submitted recommendations to the U.S. Securities and Exchange Commission (SEC) Crypto Task Force regarding tokenized securities. The recommendations come as major crypto exchanges like Coinbase and Kraken aim to secure broker-dealer licenses to offer tokenized stock trading in the U.S.
Wintermute Recommendations for Tokenized Securities Regulation
Wintermute’s feedback to the SEC stresses the importance of creating clear guidelines to help liquidity providers and other stakeholders in the tokenized securities market. The firm highlighted three critical areas: allowing tokenized securities trading by crypto brokers and dealers, enabling self-custody through key management systems and wallets, and facilitating the settlement of these assets on-chain using stablecoins and non-security assets.
Wintermute also emphasized the need for the SEC to clarify whether network tokens like Bitcoin, Ethereum, Solana, and XRP should be considered securities. The firm argues that these tokens are essential to decentralized protocols, despite their initial distribution through fundraising efforts or speculative trading. A clear distinction would help remove regulatory uncertainty and facilitate the growth of the sector.
Wintermute’s recommendations advocate for the inclusion of tokenized securities in decentralized finance (DeFi) liquidity pools and for tokenized securities to be used in lending directly on DeFi platforms. It is also requesting the SEC to avoid making these activities subject to broker-dealer registration requirements, which could inhibit the growth of the market.
SEC’s Role in Tokenized Securities Regulation
The SEC has shown an interest in regulating tokenized securities as part of its ongoing efforts to address the growing interest in crypto and blockchain-based financial products. With many platforms, including Coinbase and Kraken, seeking approval for broker-dealer licenses, the SEC’s upcoming guidance on tokenization could have a significant impact on the future of digital securities trading.
The SEC’s task force is working on issuing guidelines that would provide clarity on how tokenized securities should be traded and regulated in the U.S. Wintermute’s feedback to the SEC highlights the need for a balanced approach that promotes innovation while ensuring that investors are protected.
As the U.S. regulatory landscape continues to evolve, market participants are looking for clear frameworks that will allow them to offer tokenized securities without facing unnecessary regulatory burdens. This would likely include more flexibility for crypto exchanges to offer tokenized versions of traditional financial products, such as stocks and ETFs, using blockchain technology.
Global Adoption of Tokenized Securities and RWA Tokenization
The global market for tokenized real-world assets (RWA) has gained significant traction, with the market value reaching nearly $28 billion. This growth has been bolstered by the crypto-friendly policies seen under the Trump administration. Wintermute’s recommendations suggest that tokenized securities, including stocks, ETFs, and other traditional assets, will continue to gain popularity if the SEC provides the necessary regulatory support.
Recently, the tokenized stock trading platform Dinari became the first firm to secure a broker-dealer license to offer tokenized securities. This milestone could pave the way for other firms, including Coinbase and Kraken, to gain approval and expand their offerings in the U.S. market. Additionally, in September 2025, Galaxy Digital became the first company to tokenize its SEC-registered GLXY shares on the Solana blockchain.
This growing interest in tokenized securities has also spurred other crypto exchanges to prepare for the wider adoption of tokenized assets. The increased demand for digital asset trading platforms that support tokenized securities could significantly change how investors access traditional financial products.
