SEC Guidance Sparks Growth in Tokenized Equities on Ethereum

The US Securities and Exchange Commission (SEC) has been providing guidance on tokenized equities, which are digital representations of traditional securities on a blockchain.

According to reports, the SEC is not issuing a blanket approval for tokenized stocks but rather defining conditions under which public blockchain settlement, tokenized recordkeeping, and stock-linked trading can move closer to regulated US capital markets.

The first winners in this shift are likely to be infrastructure firms already standing closest to issuance, settlement, and post-trade operations. For example, the Depository Trust and Clearing Corporation (DTCC) has planned a limited production pilot of tokenized securities beginning in July 2026, with a full-service launch expected in October.

The SEC's guidance also means that exchanges and trading venues are moving towards supporting tokenization. Nasdaq secured approval for tokenized equities-related rules in March 2026, while NYSE rules for tokenized securities took effect on May 12.

Ethereum sits at the center of this shift because it already hosts much of the market capitalization in tokenized equities. Spendnode data cited by Cointelegraph put tokenized equities above $1.6 billion in market capitalization on May 22, with Ethereum holding 41.1% of supply.

While some market reports describe a proposed exemption that would allow third parties to issue blockchain-based tokens tied to public company shares without backing from the issuer itself, it remains unclear what this will mean for tokenized equities in practice.