Tokenized Stocks May Follow Traditional Settlement Rails, Filing Shows
A regulatory filing suggests tokenized equity would be settled via existing Wall Street infrastructure.
A recent regulatory filing reveals that investors seeking exposure to tokenized stocks may still have to rely on traditional financial gatekeepers, including the Depository Trust Company (DTC) and established exchanges.
The filing describes a framework where tokenized equity would be accessed through exchange and DTC controls, with shareholder rights and settlement processes remaining on existing rails. This suggests that while the underlying asset may be represented on a blockchain, the custody and transfer infrastructure would stay within the conventional Wall Street system.
Implications for Tokenized Securities
This approach could limit the decentralization benefits often associated with tokenization, as intermediaries would still oversee compliance, settlement, and record-keeping. However, it may also provide a smoother path to regulatory approval by fitting tokenized securities into existing legal and operational frameworks.
The filing underscores a cautious but pragmatic stance from regulators and market participants, balancing innovation with the stability of established financial infrastructure.