What investors need to know about the SEC's plan to allow tokenized stock trading
Benoit Tessier/Reuters The SEC is working on a framework to allow for 24/7 trading of tokenized stocks. Stock tokens would track the price of actual shares, offering more liquidity and faster settlement. The idea offers some advantages for traders, but there are risks, market pros say. A plan in the works from the Securities and Exchange Commission could reshape stock trading in the US. Bloomberg reported this week that the SEC is gearing up to let investors trade tokenized stocks , issuing an "innovation exemption" for the cryto-like assets that would create a new 24/7 market that's parallel to the existing stock market. So, what's that mean exactly, and what should investors know? "An example could be a tokenized version of Apple or Nvidia would be a blockchain-based asset designed to track or represent the underlying stock," Shay Boloor, chief market strategist at Futurum Equities, told Business Insider. Crypto enthusiasts have said any real-world asse...