Backers advocate for blockchain stock trading to enhance market efficiency
The tokenized stock market has reached approximately $1.4 billion in value, with Ondo Finance commanding around 60% of that total, holding an estimated $888 million. The SEC has been preparing an “innovation exemption” framework designed to let tokenized versions of public stocks trade within a regulated sandbox. And major players from Nasdaq to the Intercontinental Exchange are actively building the infrastructure to make it real.
What tokenized stock trading actually means
Instead of buying a share through a broker who talks to a clearinghouse who talks to a depository, the entire ownership record lives on a blockchain. The trade settles in near real-time rather than waiting through the traditional T+2 cycle, where “T+2” means your trade doesn’t officially close for two full business days after you hit the buy button.
The most obvious advantage is 24/7 trading. Traditional US stock markets operate roughly six and a half hours per weekday. Tokenized equities could theoretically trade around the clock, every day of the year, much like crypto markets already do.
Near-instant settlement also reduces counterparty risk. In the current system, the gap between trade execution and settlement creates a window where things can go wrong. During the 2021 meme stock frenzy, that settlement delay was a major factor in brokerages restricting trading in GameStop and other volatile names.
The institutional stampede
NYSE announced plans for a blockchain platform targeting 24/7 tokenized stock trading back in January 2026.
Robinhood launched its own blockchain on July 1, 2026. Called Robinhood Chain, it’s built on Ethereum’s Layer 2 technology and focuses on trading tokenized stocks and exchange-traded funds. The platform rapidly accumulated notable total value locked within its ecosystem.
The concept itself isn’t new. Overstock explored blockchain-based stock settlement back in 2016 with its t0 platform, which aimed for same-day settlement.
The SEC’s innovation exemption framework represents a notable departure from the enforcement-first approach that characterized previous SEC leadership’s stance toward crypto-adjacent financial products. Rather than forcing tokenized securities through regulatory structures designed for paper certificates and mainframe computers, the agency appears willing to create a parallel pathway.
The case for keeping some friction
Some regulators and market structure experts argue that certain delays in the current system aren’t bugs. During market crises, the existing settlement infrastructure gives regulators time to intervene, coordinate responses, and prevent cascading failures. Circuit breakers, trading halts, and settlement delays all serve as shock absorbers. A system that settles instantly and trades continuously removes those buffers.
When major tokens crash on a Sunday night, there’s no opening bell to pause things. No regulatory body stepping in to halt trading for fifteen minutes while everyone catches their breath. The question regulators are wrestling with is how to capture the efficiency gains of blockchain settlement without sacrificing the oversight tools that prevent small problems from becoming systemic ones.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
How much CPO demand will Nvidia Rubin Ultra generate? Bernstein: Optical value per Pod will increase fivefold
Bernstein believes that the co-packaged optics (CPO) and fiber demand driven by Nvidia's Rubin Ultra architecture will surge significantly, with the optical content per Pod rising from $1 million to $5.4 million. This will propel the size of Nvidia's optical ecosystem market to $46.8 billion by 2028 (a 91% annual increase). Although the industry faces supply bottlenecks with InP substrates, the outlook remains positive. The institution reiterates its “outperform” rating for Lumentum, Coherent, and Ciena.
UBS Q3 implements a two-way strategy with gold options, heavily invests in technology stocks, and builds positions in SK Hynix (SKHY.US)
UBS Group (UBS.US) has submitted its Q3 holdings report (13F) as of September 30, 2026.
SpaceX (SPCX.US) reportedly attempts “de-Nvidiaization” at the rack level: developing Kessel cabinets to bypass L6 compute boards, purchasing only chips
SemiAnalysis: SpaceX has developed its own Kessel cabinet, bypassing Nvidia's L6 cards to provide more options for manufacturing its own hardware.
$3.7 billion “data center power equipment prepayments” abandoned! What did "the most active buyer of gas turbines", SoftBank, see?
In the second quarter of fiscal year 2026, SoftBank reported a net loss of $7.1 billion, primarily due to a $3.7 billion impairment charge from a $9.5 billion advance payment for power generation equipment for US data centers—of which about $2.9 billion was non-refundable and effectively lost. The CFO admitted that SoftBank placed orders before the project plan was finalized, and is now conducting a comprehensive review of its procurement strategy. "The most aggressive purchaser of gas turbines has now written off the deposit in this way."
Crypto prices
More
