Major Crypto Exchanges Launch Tokenized Stock Trading as DTCC and SEC Move Toward On-Chain Securities

Major cryptocurrency exchanges are launching tokenized stock trading as regulatory frameworks shift. Coinbase plans to debut 1:1 backed tokenized U.S. equities offshore in July 2026, while Binance has launched its bStocks product. Concurrently, the SEC proposed rescinding Regulation NMS Rule 611 on June 11, 2026, potentially removing a major structural barrier to on-chain trading. Additionally, the DTCC is preparing a three-year pilot program to put real securities on a blockchain starting in July 2026.

Tokenized stock mechanics

• ▪Tokenized securities are redeemed when a holder returns tokens to the issuer, who instructs the custodian to liquidate the underlying assets for cash.
• ▪Coinbase plans to launch 1:1 backed tokenized versions of United States stocks offshore in July 2026, enabling 24/7 trading and automatic dividend distribution.
• ▪Tokenized securities are created through minting, where an issuer purchases real securities, deposits them with a custodian, and issues corresponding blockchain tokens.
• ▪Binance launched bStocks, which are tokenized securities backed 1:1 by underlying shares held with a regulated custodian and traded 24/7.

Malaysian digital asset regulation

• ▪In Malaysia, tokenized stocks and digital assets are overseen by the Securities Commission under the Capital Markets & Services Act 2007 and the Digital Currency and Digital Token Order 2019.
• ▪The Securities Commission of Malaysia distinguishes between digital assets and tokenized capital market products under Section 2 of the Capital Markets & Services Act 2007.

Traditional share comparison

• ▪Traditional shares settle through central clearinghouses typically on a T+1 or T+2 basis, while tokenized stocks settle on blockchain ledgers with near-instant transaction visibility.
• ▪Traditional shares are registered on company books through brokers or central securities systems, whereas tokenized stocks may not result in direct registration.

Investor legal rights

• ▪Holders of tokenized equities generally hold tokens providing economic exposure and dividends, but they do not automatically receive voting rights or direct legal ownership.
• ▪Delaware corporate law allows corporations to maintain stock ledgers on distributed ledgers, enabling on-chain records to function as the official book of ownership.

Compliance risk factors

• ▪The Depository Trust & Clearing Corporation received a No-Action Letter from the Securities and Exchange Commission on December 11, 2025, to launch a three-year tokenized securities pilot.
• ▪On June 11, 2026, the United States Securities and Exchange Commission proposed rescinding Rule 611 of Regulation NMS, which requires brokers to execute trades at the best available price.