Securitize Shares Surge Following SEC Approval for Tokenized Stocks
- Securitize stock rose 14% after the SEC cleared a path for trading tokenized stocks in the U.S.
- The SEC’s temporary directive, effective for five years, allows limited trading of tokenized publicly traded stocks.
- The market value of tokenized assets has increased over 70% in the past year, reaching $38.51 billion.
Carlos Domingo, CEO of Securitize Inc., spoke at the Messari Mainnet summit in New York on September 21, 2023. Securitize’s stock saw a notable surge on Thursday after the U.S. Securities and Exchange Commission (SEC) approved the issuance of tokenized stocks on select trading platforms. Securitize’s shares were last reported up 14%, peaking at a 24% increase during trading.
The SEC announced earlier in the day a temporary framework permitting the limited trading of tokenized publicly traded stocks. While this order does not constitute a formal regulatory change, it will remain in effect for a period of five years.
SEC Chair Paul Atkins emphasized the intention behind the Innovation Exemption, stating, “The Innovation Exemption is designed to resolve challenges that have prevented responsible innovation from taking root in the United States while providing investor protections and market integrity standards.” Tokenization, which involves registering ownership rights of real-world assets like stocks and bonds on a decentralized digital ledger, facilitates trading financial assets more efficiently, particularly at market close.
Securitize claimed the title of the first major tokenization company to go public in the U.S. as of early July and currently manages about 9% of the tokenized asset market. According to Needham Securities, this positions Securitize to benefit significantly from the anticipated growth in real-world asset tokenization.
The combined market value of tokenized assets reached approximately $38.51 billion by Thursday afternoon, reflecting a remarkable increase of over 70% from the previous year, according to RWA.xyz, a data provider. Needham analyst John Todaro noted that the platforms capable of attracting a broad institutional customer base will lead in this market. He commended Securitize for launching two funds with firms like BlackRock, Apollo, and KKR, along with establishing infrastructural partnerships with Computershare and the New York Stock Exchange. Todaro initiated coverage of Securitize’s stock with a buy rating.
News Courtesy of CNBC
