SEC prepares rules for tokenized stock trading, enabling 24/7 settlement. The sector grew 3,300% since 2024. Coinbase and Citigroup position for the shift.
The U.S. Securities and Exchange Commission is preparing to introduce rules that would let crypto firms offer tokenized stocks within weeks, according to a Reuters report. The shift would permit 24/7 trading of shares in companies such as Google, Nvidia, and SpaceX with near-instant settlement.
The agency had earlier paused plans for an innovation exemption over concerns about investor protection, custody, and compliance. Chair Paul Atkins is now expected to unveil the exemption, which would reduce certain disclosure and compliance burdens while maintaining oversight, the report said.
The timing reflects a surge in tokenized stock interest. Between January 2024 and May 2026 the number of tokenized stock-related crypto assets rose from 14 to 478, a gain of more than 3,300%. The broader real-world asset sector expanded from 64 to 1,282 projects over the same period, CoinGecko data show.
Traditional finance is moving in parallel. Coinbase plans to launch fully backed 1:1 tokenized stocks. Citigroup is developing tokenized shares of private companies like OpenAI and Anthropic, initially targeting international investors. The New York Stock Exchange is building a tokenization platform to support around-the-clock trading.
For traders, the risk lies in the gap between regulatory intent and market reality. Tokenized stocks offer exposure to equities with crypto infrastructure: 24/7 liquidity, self-custody potential, and faster settlement. That could pull capital from both conventional exchanges and crypto-native assets. The exemption is a test. If it works, the pipeline widens. If it fails, the sector could stall for years, several industry lawyers told Reuters.
The same data highlights concentration risk. Many of the 478 tokens may have negligible volume. Traders should watch which platforms get SEC approval first. Coinbase has the compliance infrastructure. Smaller players may struggle with the exemption's requirements.
The NYSE said its platform is under development. No date has been set for the final rules. The SEC declined to comment on the timeline.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.