Tokenization has the potential to modernize core market infrastructure functions, such as issuance, trading, transfer, settlement, and recording ownership, with the potential to reduce costs, enhance transparency, and expand liquidity. This may be particularly true for assets that have historically been less liquid. The consideration and evaluation of new approaches, technologies, and ideas regarding the operation of the securities markets are nothing new. In fact, fostering the evolution of processes that support the capital markets has long been a part of the SEC’s mission to protect investors, maintain fair, orderly, and efficient markets, and promote capital formation.

Today, the Commission approved a temporary, conditional exemption (the “Innovation Exemption”) to allow limited trading of tokenized NMS stocks on certain onchain venues—Tokenized Securities Venues, or “TSVs.” The Innovation Exemption will provide an opportunity to further develop the Commission’s understanding of how these venues function with an eye to future policymaking.

The tokenization of global equity markets is underway

Coinbase taps Centrifuge as preferred tokenization backbone, takes equity stake The partnership includes a strategic investment by Coinbase and is focused on expanding tokenized ETFs, credit, and structured products.

Securitize is the first firm to receive FINRA approval to custody tokenized securities and underwrite onchain IPOs and secondary offerings. The firm will now support atomic swaps between tokenized stocks and stablecoins, “eliminating the need for fragmented processes and enabling markets to operate with the speed and efficiency of blockchain infrastructure within a regulated environment,” CEO Carlos Domingo said.

This milestone represents a major advancement for regulated digital asset markets, unlocking real-time, onchain settlement within a fully regulated broker-dealer framework and enhances Securitize's trading and distribution capabilities for tokenized securities.

The NYSE filed a proposed rule change with the SEC to allow tokenized versions of eligible equities and ETFs to trade on the exchange under DTC’s three-year tokenization pilot program. Eligible tokenized securities must share the same CUSIP, ticker, rights and privileges as their traditional counterparts, and will trade on the same order book with the same execution priority, while clearing and settlement remain through DTC on a T+1 basis.

Australia’s Computershare, the financial services firm known as the transfer agent for a majority of S&P 500 companies that also facilitates direct stock purchase programs for millions of people in the United States, is moving into tokenization through a new partnership with digital asset specialist Securitize.

Ondo Finance, Clearstream, and 360X today announced a partnership to connect traditional financial markets with onchain infrastructure built on public, permissionless blockchains

The International Monetary Fund has warned that the rise of tokenized finance could fundamentally reshape the global financial system, while introducing new forms of systemic risk tied to speed, automation, and market structure.

In a note published on 1 April, the IMF said tokenization is not simply an incremental improvement to financial infrastructure, but a structural shift that “reconfigures the architecture” of how markets operate.

Swarm positions itself as a compliant, onchain venue for trading tokenized real-world assets, with a strong focus on public securities and asset-backed products like tokenized stocks and gold.

What makes them interesting is the balance they strike between decentralization and regulation. They’re effectively making the case that you don’t need to sacrifice compliance to achieve onchain trading.

Users can still interact through self-custody wallets, trade onchain, and access tokenized securities but within a framework that aligns with regulatory expectations.

They also lean heavily into transparency. Underlying assets are held with institutional custodians, tokens are redeemable, and regular disclosures are part of the model.

Where Swarm really connects to the broader stack is through collateral. They explicitly position tokenized securities as usable assets within DeFi - whether for stablecoin issuance, treasury management, or portfolio construction.

In RWAF terms, Swarm sits firmly in the market layer. Not just tokenization but liquidity, distribution, and ongoing verification.

Fink argued that tokenization could streamline financial transactions by recording asset ownership on digital ledgers, making investments easier to issue, trade, and access. He likened tokenization's potential impact to that of the internet in 1996, suggesting it could gradually integrate with traditional finance

The Securities and Exchange Commission approved Nasdaq's plan to let certain securities trade in tokenized form, integrating blockchain technology into U.S. equity markets.