The U.S. Securities and Exchange Commission (SEC) is reportedly preparing to take a major step toward merging Wall Street with Web3: allowing traditional finance (TradFi) stocks to trade onchain through real-world asset (RWA) tokenization.
If implemented, this move could let everyday investors trade stocks like Tesla, Nvidia, or Apple on blockchain-based platforms—bypassing brokers and accessing markets 24/7.
A Radical Shift for TradFi
For decades, retail traders have had to go through centralized intermediaries—brokerages, clearinghouses, and custodians—to buy and sell equities. Trading hours were also confined to narrow windows on weekdays.
By tokenizing stocks as RWAs, the SEC could eliminate many of those barriers. Tokenized equities would mirror the value of their underlying assets but could be traded at any time, directly on Web3-native exchanges.
That means investors could:
- Move assets instantly, without waiting for settlement windows.
- Trade outside of traditional market hours.
- Potentially avoid layers of middlemen and fees.
Such a model would bring equity trading closer to the accessibility and speed crypto traders already enjoy.
SEC’s Crypto Push
The initiative comes as the SEC accelerates pro-crypto measures, from streamlining ETF approvals to experimenting with exemptions for digital asset innovation.
While asset managers like BlackRock have already piloted tokenization with ETFs, the SEC’s plan appears far more ambitious. Rather than limiting tokenization to funds, it could extend the model across a broad spectrum of publicly traded companies.
It’s not yet clear whether the rollout will begin with a limited pilot—say, a few blue-chip stocks—or whether exchanges will be free to list a wider range of equities. Reports suggest the agency wants to move “quickly,” though no official timeline has been confirmed.
Political Pressure and Market Potential
The political backdrop is also driving urgency. The Trump administration has made TradFi–Web3 integration a stated priority, even pushing last month to record economic data directly on blockchain networks.
BREAKING: The SEC is reportedly moving to allow stocks to trade like crypto, where stocks would trade on-chain.
— The Kobeissi Letter (@KobeissiLetter) September 30, 2025
Under the plan, investors could buy tokens on crypto exchanges that represent shares of companies like Tesla or Nvidia.
If the SEC follows through, tokenized stocks could create a multi-trillion-dollar opportunity for crypto exchanges, investors, and DeFi protocols. Bringing the so-called “Magnificent 7” tech stocks onchain alone would be transformative, but a broader rollout could redefine how global markets operate.
What’s Next?
The SEC hasn’t released an official announcement yet, and critical details—like regulatory safeguards, custody requirements, and investor protections—remain unclear.
Still, the direction is obvious: traditional finance is inching closer to Web3. If stocks really do move onchain in the coming weeks or months, the shift could mark one of the most significant structural changes to markets in decades.
