New rules for trading tokenized stocks to take effect in the US

The U.S. Securities and Exchange Commission has introduced new rules for trading tokenized stocks. The SEC will not require certain platforms to fully comply, for five years, with the regulations that normally apply to stock exchanges like Nasdaq and NYSE.

A tokenized stock is a digital version of a regular company share that trades on a blockchain. Under the SEC's rules, such an asset must give its holder the same core rights as a regular share, including the right to receive dividends and participate in voting.

Before adding a tokenized version of a company's stock, a platform will be required to notify the company itself. If the company objects, offering a tokenized version of its stock will be prohibited. The new regime will not apply to synthetic products that merely track a stock's price.

Coinbase has already stated that it wants to offer tokenized stocks in the U.S. once appropriate rules are in place. Robinhood and Kraken already offer similar products to customers in other countries.

Source: Yahoo Finance