The SEC is reportedly advancing a plan to allow blockchain-based stock trading, which could benefit platforms like Coinbase and Robinhood while raising concerns among traditional financial firms about potential market disruptions and compliance issues. Tokenized stocks would enable investors to purchase shares in the form of tokens, streamlining trade settlements but also introducing new risks. However, legacy financial players may challenge the SEC, delaying the implementation of this initiative.

The article discusses the trend of tokenizing stocks within the fintech sector, highlighting its potential to revolutionize asset ownership and trading. It emphasizes the benefits of increased accessibility and liquidity for investors, as well as the implications for traditional stock markets. The piece also touches on the growing interest in blockchain technology as a driving force behind these developments.

Nasdaq has filed a proposal with the U.S. SEC to allow the trading of tokenized stocks alongside traditional methods, marking a significant shift in its operations towards blockchain integration. This move aims to enhance market efficiency and offer investors the choice of trading equities on-chain, while still ensuring the benefits of regulated markets. SEC Chairman Paul Atkins emphasized the importance of asset tokenization as part of the agency's priorities.