The U.S. Securities and Exchange Commission has made public a comment letter submitted by Stove Finance in connection with an exemption request related to tokenized stocks. The letter centers on infrastructure issues that emerge once tokenized equities move into on-chain markets. It points to operational areas such as asset conversion between traditional securities systems and blockchain ledgers, inventory replenishment, reconciliation, and the handling of corporate actions including dividends and stock splits across different systems.
In its submission, Stove Finance proposed allowing registered broker-dealers to take a larger role in building the infrastructure for on-chain securities records, reconciliation, and delivery. It also called for broker-dealers, custodians, transfer agents, and on-chain trading venues to work together on unified standards covering asset conversion, settlement status, and corporate actions. The filing also notes that as tokenized stocks increasingly enter DeFi settings such as AMMs and liquidity pools, post-trade settlement, asset servicing, and interoperability between systems are becoming the next set of problems the industry needs to address.
The U.S. Securities and Exchange Commission has disclosed a public comment letter submitted by Stove Finance regarding an exemption tied to tokenized stocks.
The letter focuses on infrastructure issues that arise after tokenized stocks enter on-chain markets. It highlights asset conversion between traditional securities systems and blockchain ledgers, inventory replenishment, reconciliation, and the question of how corporate actions such as dividends and stock splits can remain consistent across different systems.
In the letter, Stove proposed allowing registered broker-dealers to play a bigger part in building infrastructure for on-chain securities recordkeeping, reconciliation, and delivery. It also said broker-dealers, custodians, transfer agents, and on-chain trading venues should jointly establish unified standards for asset conversion, settlement status, and corporate actions.
As tokenized stocks gradually move into DeFi settings such as automated market makers, or AMMs, and liquidity pools, the industry is increasingly being pushed to solve issues beyond trading, including settlement, asset servicing, and interoperability across systems.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
