SEC Explores Tokenized Stocks for Crypto Exchanges Amid $31 Billion Tokenization Surge

* The U.S. SEC is considering allowing crypto exchanges to trade tokenized stocks. * Major crypto exchanges and traditional finance firms are showing growing interest in the initiative. On September 30, 2025, Cointelegraph reported that the U.S. Securities and Exchange Commission (SEC) is evaluating a proposal to let certified cryptocurrency exchanges trade tokenized equities, which are blockchain-based versions of stocks. If approved, this move would mark a pivotal step toward integrating digital assets into conventional finance. This initiative, still in its early phases, aims to let investors buy and sell digital representations of publicly traded company shares on vetted cryptocurrency platforms. SEC Chair Paul Atkins underscored the agency's commitment to fostering tokenization, stating it is part of a broader effort to improve market accessibility and reduce transactional costs. The industry increasingly views tokenization—the process of migrating traditional assets like stocks onto blockchain systems—as an innovation that can bridge the divide between traditional and digital financial ecosystems. Prominent cryptocurrency exchanges, including Robinhood, Kraken, and Coinbase, are actively pursuing regulatory approval to introduce tokenized equities on their platforms. Meanwhile, Nasdaq has formally petitioned the SEC for a rule amendment to permit tokenized securities trading on its exchange, a move that signals heightened interest from established financial institutions. However, traditional financial firms have expressed concerns about the potential consequences of tokenization. Leading market maker Citadel Securities urged regulators to ensure that blockchain adoption creates genuine efficiency gains while also warning that the technology should not create new regulatory or structural vulnerabilities. These concerns highlight the industry's cautious optimism as it grapples with integrating blockchain solutions into mainstream financial markets. Although still in its early stages, the market for tokenized equities is experiencing robust growth. Tokenized assets collectively represent over $31 billion, and equities account for approximately 2% of this total. The value of tokenized equities has nearly doubled over the past 100 days, growth that suggests rising investor interest and signals increased momentum toward mainstream adoption.