Kraken, Robinhood and other platforms allow users to buy tokenized stock. Bitwise’s Matt Hougan calculates that the total value of tokenized assets is $257 trillion. It’s a market which has not been represented on innovative platforms. Regulations are responding to this trend. U.S. Securities and Exchange Commission Chair Paul Atkins is encouraging the emergence and use of tokenized stock, while Hester Perrice has warned against it. “unique risks.”
Hester Peirce: What is she saying?
Hester Peirce, the head of SEC Crypto Task Force, spoke out on July 9th, 2025 when tokenization became a hot topic. issued a statement On the SEC’s website. She titled her message “Enchanting but not Magical,” Media summarized it as: “tokenized securities are still securities.”
Peirce stressed in her message that tokenized securities are eligible for securities laws. Blockchain doesn’t transform securities or assets into cryptocurrency. Securities laws are applicable to tokenized assets. Investors and issuers should be aware that this is the case to reduce risk.
You can also read about “unique risks,” Peirce stated that certain securities were tokenized either by the entity that issued them or that they tokenized security entitlements. Such possibilities introduce counterparty-risks, which traders must be mindful of. Distributors who distribute tokenized securities should also remember to comply with their disclosure requirements.
“While blockchain-based tokenization is new, the process of issuing an instrument representing a security is not. The same legal requirements apply to on- and off-chain versions of these instruments.”
Peirce concludes her remarks by urging market participants to join forces with SEC to develop a framework legal for the trading of tokenized security.
Gary Gensler (SEC chair in the Biden era) was well-known for deeming most cryptocurrency unlicensed securities. This led to many legal battles. Hester Peirce’s statement differs significantly. She reminded the public that just because securities are in a different format, it doesn’t mean they have changed their legal nature. Gensler said altcoins were securities, Peirce claims securities are securities.
Is Peirce’s claim representative of the SEC?
SEC chair Paul Atkins, however, has expressed positive statements regarding tokenized shares. Atkins, as reported in multiple media outlets, referred to the tokenized securities. “innovation” The SEC is urged to promote innovation on the market.
He did say thatAtkins doesn’t suggest the current trading methods can be left unchanged. He said in the interview that tokenized security is not a novel product. However, Atkins believes it to be beneficial for the markets and is seeking to change the regulations accordingly.
Peirce’s statements fully match the SEC Chair’s vision.
What are the challenges in RWA markets today?
Recent incidents have shown that companies deny involvement in tokenized securities announced or traded by markets.
OpenAI’s latest dismissal Robinhood CEO Vlad Tenev announced publicly that OpenAI’s tokenized shares would be soon available on Robinhood. Tenev acknowledged that “stock tokens” OpenAI does not consider the equity traded through Robinhood as OpenAI.
What is the future of tokenized stock?
Vlad Tenev of Robinhood has called for tokenization, believing that this will enable retail investors to easily trade securities while also benefiting institutional traders. The tokenization of shares is a move that has been made by Robinhood’s Vlad Tenev. He believes it will empower retail investors to trade securities and benefit institutional traders as well. Bloomberg interviewHe said that the SEC was working with companies, such as Robinhood, on adjusting rules for tokenized shares.
Recent studies have shown that the number of people who are able to speak English is increasing. memoMatt Hougan, CIO of Bitwise, outlined prospects for the tokenized market. He predicts that Layer 1 marketplaces and blockchains will be competing for shares of the emerging global market. Hougan quotes BlackRock CEO Larry Fink who stated: “Every stock, every bond, every fund, every asset, can be tokenized.”
The estimated stablecoin market of $2 trillion by 2030, compared to the tokenized stock markets worth $257 trillion is barely noticeable. Hougan is confident that tokenization will develop rapidly, and he says today’s stock token investors have a lot of money. “very early.”
“I still think it will take more than a decade before the majority of stock and bond trading happens on-chain. But with major financial firms like Robinhood and Tradeweb positioning themselves for the transition today, I’ve started to wonder: Could tokenization achieve 1-5% penetration in a few years? Could a dozen major pilot projects lift us to that level of market penetration? It seems possible, and it would translate into trillions of dollars … more than any other crypto application or asset, including Bitcoin.”
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: crypto.news
