Former FTX Europe chief targets U.S. tokenized stock trading with new SEC exemption

A tokenized stock is a blockchain-based representation of a company’s share. It is designed to connect digital trading with an underlying security, rather than merely copy the stock’s price. The idea matters because marketplaces could trade U.S. stocks on public blockchains instead of using only traditional exchange systems.

Under the SEC’s new framework, the token must provide the same shareholder rights as an ordinary share. Those rights include dividends and voting. Perpetuals.com plans to offer such securities through permissioned liquidity pools, initially on its Kronos X Public blockchain. Each pool would pair a tokenized stock with a digital asset, initially expected to be a form of USDC.

The token is not automatically a legal share simply because it exists on a blockchain. The issuer, venue, custody arrangements and securities-law compliance must connect it to the underlying ownership rights. Perpetuals still needs market-data arrangements, compliance work and smart-contract security reviews before launching.

The clearest announced figure is more than 60 tokenized U.S. stocks. OKXICE, a joint venture between crypto exchange OKX and NYSE parent Intercontinental Exchange, filed plans for round-the-clock trading of that amount. This makes the proposed marketplace potentially broad from its first launch, rather than limited to just a few experimental shares.

Perpetuals.com is the second company pursuing a venue under the SEC’s five-year innovation exemption. Its notice describes the marketplace and its planned blockchain infrastructure, but the article does not give a number of stocks it will initially list. Its pools would pair tokenized U.S. stocks with a digital asset, initially expected to be a form of USDC.

Therefore, the article supports a precise answer only for OKXICE: more than 60. It does not establish a combined total for both marketplaces. Availability will also depend on companies not objecting, technical preparation, compliance arrangements and completed disclosures before trading begins.

The SEC’s five-year innovation exemption creates a temporary route for certain marketplaces to trade U.S. stocks on public blockchains. They can operate without registering as traditional securities exchanges. The framework matters because it tests blockchain-based market infrastructure inside a defined regulatory window rather than requiring an immediate move into the standard exchange model.

The tokens must carry the same shareholder rights as ordinary shares. The article specifically names dividends and voting rights. Companies also receive 30 days to object to having their shares traded on a tokenized securities venue. Perpetuals.com filed a notice under this framework, following OKXICE’s earlier proposal.

The exemption does not mean trading can begin immediately. Perpetuals must complete market-data and compliance arrangements, smart-contract security reviews and other preparations. Its spokesperson said trading could start in mid-November at the earliest, after the required 30-day period and before updated disclosures are published.

The key promise is that tokenization should not strip away ownership rights. Under the SEC’s new framework, tokens must carry the same rights as ordinary shares. That includes receiving dividends and participating in shareholder votes. This separates compliant tokenized securities from earlier products that offered only economic exposure.

For example, a token linked to a company’s stock would be expected to represent the relevant share rights, not merely rise and fall with the share price. Perpetuals.com plans to trade these tokens in permissioned automated market maker pools. The article says each pool would pair a tokenized U.S. stock with a digital asset, initially expected to be a form of USDC.

Companies have a separate protection: they receive 30 days to object to their shares being traded on a tokenized venue. That is the company’s objection period, not an investor voting right. Actual launch still depends on compliance work, disclosures, data arrangements and smart-contract reviews.

The biggest difference is legal and economic rights. Binance’s stock tokens, created with technology from Digital Assets AG and work involving CM-Equity, gave crypto traders exposure to stock prices. They did not provide voting rights. The article also says those early products differed from the securities envisioned under the SEC’s framework.

Digital Assets AG helped create tokens linked to companies such as Tesla and Coinbase for Binance and FTX in 2021. Binance discontinued its offering in July that year amid regulatory scrutiny. German regulator BaFin raised concerns, including the absence of a published securities prospectus. These products therefore acted more like price-linked instruments than complete shareholder interests.

Under the new framework, a token must carry the same shareholder rights as an ordinary share. That includes dividends and voting rights. The proposed venues also face a 30-day company objection period. Perpetuals.com’s planned tokens are intended to fit this newer model, subject to compliance, disclosures and technical reviews before launch.

A traditional stock exchange order book matches buy and sell orders submitted at different prices. Perpetuals.com plans a different mechanism. Its venue would use permissioned automated market maker pools, where smart contracts and pooled liquidity facilitate trades between participants. This could make the trading process more programmatic and blockchain-based.

Initially, each pool would pair a tokenized U.S. stock with a digital asset, expected to be a form of USDC. A trader would interact with the pool rather than waiting for a directly matching order from another trader. The pools would operate on Kronos X Public, an Ethereum-compatible layer-2 blockchain developed by the company.

The model is still being prepared, not already live. Perpetuals must complete technical and compliance arrangements, market-data work and smart-contract security reviews. It also plans updated disclosures, including live smart-contract addresses, before trading begins. The spokesperson said mid-November is the earliest possible start.

A blockchain is a record-keeping and transfer system. It can show who controls a digital token and execute transfers through smart contracts. But code alone does not decide whether that token represents a legally enforceable share. The legal connection must come from securities rules, contracts, the issuer’s records and arrangements for holding or delivering the underlying asset.

This distinction explains the SEC’s requirements. The framework says tokenized U.S. stocks must carry the same rights as ordinary shares, including dividends and voting. A token that only tracks a stock’s price would not automatically give those rights. Binance’s earlier stock tokens illustrate the difference because they offered price exposure without voting rights.

Custody and compliance arrangements help connect digital control with the underlying security and its shareholder records. The article does not detail a custody model, so this point relies on established securities practice. Perpetuals still needs compliance work, disclosures and smart-contract reviews before its proposed venue can launch.