Key Takeaways
- The SEC is reportedly preparing an innovation exemption that could allow third-party tokenized stocks to trade on DeFi platforms without issuer approval.
- The move could open the door to 24/7 global stock trading, instant settlement, and deeper integration between TradFi and blockchain-based finance.
- As tokenized RWAs continue booming, platforms like Kraken, Securitize, Backed, Raydium, and Dinari are emerging as key players to watch.
The US Securities and Exchange Commission (SEC) may be preparing one of the biggest shifts yet in the relationship between Wall Street and decentralized finance (DeFi).
According to a Bloomberg report, the agency could introduce an “innovation exemption” framework as early as this week.
The exemption would allow tokenized versions of traditional stocks to trade on blockchain-based platforms without needing direct approval from the underlying companies.
If implemented, the proposal would mark a major step toward bringing real-world assets (RWAs) fully on-chain.
What the SEC’s Reported Plan Would Actually Allow
At the center of the proposal are tokenized stocks — blockchain-based tokens tied to the value of publicly traded companies like Apple (AAPL), Nvidia (NVDA), or Tesla (TSLA).
Under the reported framework, third parties could issue these tokens and allow them to trade on DeFi platforms without requiring permission from the companies themselves.
That is a major distinction.
Traditional tokenized securities usually require direct issuer involvement and often come with stricter compliance obligations tied to shareholder rights.
The new exemption appears designed to create a lighter structure focused more on market access and price exposure.
According to the report, the framework would include several key conditions:
- No direct company approval required for token issuance.
- Trading allowed on DeFi platforms and decentralized exchanges.
- Platforms would still need to provide core shareholder-related rights, such as dividends or voting access, to remain compliant.
- Faster approval pathways aimed at encouraging blockchain innovation while maintaining investor protections.
The proposal builds on a broader shift already happening at the SEC under Chair Paul Atkins, whose approach has been viewed as more open toward crypto and tokenization initiatives.
It also follows Nasdaq’s March 2026 approval to support tokenized securities trading involving major US stocks and ETFs, alongside ongoing blockchain pilots tied to the NYSE.
Why Tokenized Stocks Matter
For years, TradFi and DeFi have largely operated as separate systems.
Stock markets still rely on limited trading hours, intermediaries, and settlement processes that can take one or two business days.
DeFi markets, meanwhile, operate continuously with near-instant execution.
Tokenized equities could start merging those worlds together.
Supporters argue the model could give global investors easier access to US stocks without relying on traditional brokerages or geographic restrictions.
It could also reduce settlement delays and lower costs through blockchain-based infrastructure.
More importantly, it pushes blockchain deeper into mainstream financial infrastructure.
Instead of tokenizing purely crypto-native assets, firms are now trying to bring traditional securities, bonds, commodities, and credit markets on-chain.
That shift has become one of the fastest-growing narratives across crypto in 2026.
The Biggest Platforms To Watch
Several crypto and tokenization platforms are already positioning themselves for a future where tokenized equities become mainstream.
Kraken
Kraken has already launched tokenized stock products through its xStocks initiative on Solana, offering tokenized exposure to dozens of US equities and ETFs.
Securitize
Securitize remains one of the biggest regulated players in the tokenized securities market and has partnered with firms like Jump Trading and Jupiter to expand compliant on-chain trading infrastructure.
Backed Finance
Backed has emerged as a major player in tokenized equities through its work on xStocks and 1:1-backed stock products tied to real shares.
Raydium
Raydium, Solana’s largest decentralized exchange, could become a major liquidity hub if tokenized equities gain wider DeFi adoption.
Dinari
Dinari focuses specifically on tokenized US equities through its dShares model, offering blockchain-based stock exposure alongside stablecoin dividend payouts and 24/7 trading.
Together, these platforms are helping build the infrastructure for what many believe could become the next major phase of crypto adoption.
The RWA Market Is Growing Fast
The SEC’s reported proposal also lands during a massive surge in tokenized real-world assets.
RWAs — which include tokenized stocks, Treasuries, commodities, private credit, and real estate — have become one of the fastest-growing sectors in crypto.
By early 2026, estimates placed the tokenized RWA market somewhere between $24 billion and $36 billion in on-chain value, with some categories growing more than 250% over the past year.
Tokenized US Treasuries currently dominate the sector, followed by commodities like gold. Equities are increasingly becoming the next major battleground.
Large institutions, including BlackRock through its BUIDL fund, have already entered the space, while platforms like Ondo Finance and Securitize continue expanding tokenized investment products.
Longer term, some analysts project the RWA market could eventually grow into the trillions if tokenization becomes widely adopted across traditional finance.
A Bigger Shift for Financial Markets
The SEC’s reported innovation exemption is not just another crypto policy update.
It represents a broader shift in how regulators may start viewing blockchain infrastructure itself.
Rather than treating tokenization as a niche crypto experiment, regulators increasingly appear focused on how blockchain systems can modernize traditional financial markets.
That does not mean the path will be simple.
Questions around regulation, investor protections, interoperability, liquidity, and market manipulation still remain unresolved.
Critics from traditional finance have also argued that DeFi platforms should be subject to the same rules as exchanges and broker-dealers.
But momentum around tokenization continues building quickly.
If the SEC moves forward with the exemption, it could become one of the clearest signs yet that tokenized stocks and blockchain-based financial markets are moving closer to the mainstream.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
