24/7 Trading Could Reshape Equity Markets
Tokenized stocks could extend trading beyond the fixed hours used by traditional U.S. exchanges. Blockchain networks can process transactions continuously, supporting trading at night, on weekends, and on holidays. Consequently, eligible markets could operate on schedules that differ from conventional venues.
The technology could shorten settlement times by recording ownership changes directly on blockchain networks. Yet tokenization does not remove market duties, because securities still require safeguards and clear ownership rights. Moreover, firms must determine how digital shares connect with brokers, custodians, clearing systems, and infrastructure.
The SEC has supported experiments involving blockchain-based securities infrastructure. Its no-action relief for a DTCC pilot covers selected equities, ETFs, and Treasury securities. Nasdaq has also developed infrastructure for trading and settlement of tokenized securities.
Wall Street Builds Tokenization Infrastructure
Financial firms and crypto companies are building systems that could support blockchain-based securities markets. These efforts focus on trading, custody, settlement, and links between digital networks and financial infrastructure. As a result, tokenization is moving beyond experiments and into market structure discussions.
The SEC is also considering changes that could affect trading models and competition. An August 11 submission from Ondo Finance backed proposed Regulation NMS changes affecting alternative market structures. Those changes could create more room for trading models outside traditional order books.
Tokenized shares would remain securities when blockchain networks record their ownership. SEC materials have distinguished between issuer-backed tokens and third-party models, which can affect shareholder rights. Therefore, the exemption could shape how firms issue, trade, custody, and settle U.S. equities.
This article was originally published as Sec Tokenized Stock Plan Could Bring 24/7 Trading to U.S. Markets on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.
