Ethereum Powers First SEC-Compliant Public Equity Tokenization, Bridging TradFi and DeFi

Source: [1] title1 (https://investors.sharplink.com/sec-registered-equity-on-ethereum-sharplink-superstate-tokenize-sbet/) [2] title2 (https://cryptonews.com/news/sharplink-and-superstate-launch-sec-registered-tokenized-equity-on-ethereum-with-sbet-shares/)

SharpLink Gaming, Inc. (Nasdaq: SBET) has partnered with financial technology firm Superstate to tokenize its SEC-registered common stock directly on the Ethereum blockchain, marking a milestone as the first publicly traded company to natively issue equity on the platform. The initiative, facilitated through Superstate’s regulated onchain issuance platform, aims to demonstrate how blockchain infrastructure can enhance shareholder value, improve market efficiency, and modernize capital markets. Tokenized shares, legally equivalent to traditional book-entry equity, will be compatible with self-custodied digital wallets and decentralized financial products, expanding access to global investors.

The collaboration with Superstate will explore regulated trading of tokenized shares on Automated Market Makers (AMMs) and other decentralized finance (DeFi) protocols, aligning with the U.S. Securities and Exchange Commission’s (SEC) Project Crypto agenda. This initiative seeks to modernize securities regulation for digital assets and blockchain-driven markets. If realized, trading compliant tokenized securities on AMMs could unlock broader liquidity and utility for investors while streamlining capital flows between issuers and markets.

SharpLink’s Co-CEO Joseph Chalom emphasized that tokenizing equity on Ethereum represents a strategic shift in global capital markets. “This is not merely a technological achievement but a statement about the future of finance,” he stated. Joseph Lubin, SharpLink’s Chairman and Ethereum co-founder, added that the move reinforces Ethereum’s role as the foundation for next-generation financial infrastructure. Lubin highlighted SharpLink’s position as a major corporate holder of ETH, having accumulated over 838,000 ETH and generated 3,815 ETH in staking rewards since June 2025.

Superstate’s CEO Robert Leshner described the partnership as a “milestone worthy of an Ethereum-aligned company,” noting the potential to expand tokenized equity ecosystems. The tokenized shares will remain SEC-compliant while enabling integration with composable DeFi protocols, a step toward bridging traditional finance (TradFi) with decentralized systems. Superstate’s Opening Bell platform, which allows companies to tokenize SEC-registered equity via blockchain, will underpin the initiative.

SharpLink’s broader ETH treasury strategy, launched in June 2025, positions it among the largest corporate holders of Ethereum. The company’s acquisition of 10,000 ETH from the Ethereum Foundation in July 2025 further underscores its commitment to Ethereum’s ecosystem. By leveraging Ethereum’s smart contract capabilities, SharpLink aims to demonstrate how public companies can align with blockchain to drive innovation in capital markets.

The initiative aligns with the SEC’s ongoing efforts to adapt regulatory frameworks for digital assets. Project Crypto, a key component of the SEC’s modernization agenda, seeks to foster innovation while ensuring compliance. Tokenized equities on AMMs could redefine market structure by enabling seamless, transparent trading of securities, though the project remains subject to regulatory and market risks.

SharpLink’s press release includes forward-looking statements, such as its intention to tokenize shares and expand staking activities, which are subject to uncertainties. Risks include volatility in ETH prices, changes in securities laws, and the impact of competitive products. The company also noted potential accounting challenges due to fluctuations in crypto asset valuations under U.S. GAAP.

This collaboration between SharpLink and Superstate represents a significant step toward integrating blockchain into traditional financial systems, with implications for liquidity, accessibility, and regulatory evolution in capital markets.