"The Securities & Exchange Commission (SEC) is developing a plan to let blockchain-based versions of stocks trade on approved cryptocurrency exchanges. As part of the regulatory body's crypto push, the plan would allow tokenized shares - digital representations of traditional stocks - to operate like cryptocurrencies, with near-instant settlements instead of the current T+1 day wait. The proposal could enable 24/7 trading, cut costs because of the blockchain's efficiency, and open markets to more retail investors through apps."
"Robinhood Markets ( NASDAQ:HOOD ) stands to benefit significantly from the SEC's blockchain plan. The company already offers tokenized U.S. stocks and ETFs to users in Europe through its Robinhood Chain on the Arbitrum network, including names like Nvidia ( NASDAQ:NVDA ) and Apple ( NASDAQ:AAPL ). If approved, this could extend domestically, allowing seamless integration of stocks with crypto on its platform. Robinhood has lobbied aggressively for exemptions, positioning itself to attract more retail traders seeking 24/7 access and low fees."
The Securities & Exchange Commission is developing a plan to permit blockchain-based versions of stocks to trade on approved cryptocurrency exchanges. Tokenized shares would act like cryptocurrencies, enabling near-instant settlements instead of the current T+1 process and potentially allowing 24/7 trading. The change could reduce costs through blockchain efficiency and expand access to retail investors via apps. Risks include regulatory gaps and market fragmentation. Robinhood already offers tokenized U.S. stocks and ETFs in Europe on the Arbitrum network and could integrate tokenized stocks domestically, boosting trading volume and diversifying revenue.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]