Former FTX Europe Chief Explores U.S. Tokenized Stock Trading, Market Sees Billions in Value
A former FTX Europe executive is targeting U.S. tokenized stock trading with a new SEC exemption, while the broader tokenized equities market has reached billions in value, often trading outside traditional U.S. market hours.
What happened
Nasdaq-listed Perpetuals.com is reportedly seeking to establish a U.S. tokenized stock marketplace, a venture led by a former chief executive of FTX Europe. This initiative marks the second entity to pursue such a marketplace under a new framework provided by the U.S. Securities and Exchange Commission (SEC). Prior to this, a joint venture involving OKX and ICE, the parent company of the New York Stock Exchange (NYSE), also embarked on a similar endeavor.
Globally, the value of tokenized equities has reached nearly $3.3 billion. A significant portion of this trading activity, particularly for tokenized stocks on blockchain platforms like Solana and BNB Chain, takes place outside of standard U.S. stock market hours.
Why it matters
The pursuit of a U.S. tokenized stock marketplace by Perpetuals.com, following a previous joint venture, indicates a potential expansion of tokenized asset offerings within regulated environments. The reported value of tokenized equities, approaching $3.3 billion, suggests growing interest and adoption in this sector. The fact that most tokenized stock trading on certain blockchain networks occurs outside U.S. market hours highlights a potential shift towards more continuous market access for investors, beyond the traditional operating hours of Wall Street.
Safety notes
Investors should be aware that the reports provide limited details regarding the specifics of the SEC exemption, the operational structure of Perpetuals.com's proposed marketplace, or the regulatory oversight applied to the $3.3 billion in tokenized equities trading. The reports do not specify the nature of the assets tokenized or the specific risks associated with trading outside traditional market hours. Information on the SEC's new framework for tokenized stock marketplaces is thin in the provided reports, suggesting further research may be necessary for those interested in participating in this market.