Securitize jumps after regulators greenlight some tokenized U.S. stock trading

Federal regulators approved the issuance of tokenized stocks on certain U.S. trading platforms, sending Securitize up 14% Thursday. The tokenization platform peaked at a 24% gain intraday following the regulatory greenlight.

The approval marks the first time U.S. regulators have cleared tokenized equity trading on domestic platforms, opening a new avenue for digital securities. Securitize operates infrastructure that enables companies to issue and manage tokenized securities on blockchain rails.

The regulatory clearance applies to "some trading platforms," though the specific platforms authorized were not detailed in the announcement. The move signals a potential shift in how digital assets intersect with traditional equity markets, giving certain venues permission to list and trade blockchain-based representations of U.S. stocks.

Tokenized securities represent ownership stakes recorded on a blockchain rather than through traditional clearing systems. The technology promises faster settlement times and fractional ownership capabilities, though adoption has been limited pending regulatory clarity.