SEC's Blockchain Framework Paves Way for $30 Trillion Tokenized Future

Generated by AI AgentCoin World
Wednesday, Oct 1, 2025 4:16 am ET1min read
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Aime RobotAime Summary

- SEC's Project Crypto proposes blockchain-based stock trading to modernize securities settlement and address $24B+ real-world asset tokenization growth.

- Major banks like JPMorgan and Goldman Sachs launch tokenized funds, bridging $7T markets while integrating DeFi and traditional assets.

- Framework aims to resolve regulatory gaps in custody, compliance, and interoperability as tokenization expands from $5B (2022) to projected $30.1T by 2034.

- Challenges remain in harmonizing regulations and preventing obsolescence, requiring balance between innovation and investor protection in evolving markets.

The U.S. Securities and Exchange Commission (SEC) is reportedly advancing a proposal to facilitate the trading of stocks on blockchain platforms, marking a potential shift in how securities are settled and managed. According to recent developments, the SEC's Project Crypto explicitly aims to enable tokenized securities trading on decentralized platforms, aligning with broader efforts to modernize financial infrastructure. This move reflects growing institutional interest in blockchain technology, as major banks and asset managers explore tokenization to enhance liquidity, reduce settlement delays, and expand access to global markets Real-World Assets Nearly Died. Now They’re Soaring In Crypto[1].

The push for blockchain-based stock trading is part of a larger trend toward real-world asset (RWA) tokenization, which has surged from $5 billion in 2022 to $24 billion by mid-2025. Projects like Japan's Mitsubishi UFJ Financial Group tokenizing a ¥100 billion Osaka office tower and Dubai's Prypco Mint platform demonstrate how tokenization is reshaping asset ownership. These initiatives highlight the potential for blockchain to streamline transactions, lower costs, and democratize access to traditionally illiquid assets. The SEC's proposed framework could accelerate this trend by addressing regulatory ambiguities and establishing clear guidelines for tokenized securities Real-World Assets Nearly Died. Now They’re Soaring In Crypto[1].

Key players in traditional finance are already adapting to this shift.

, , and have launched blockchain-based money market funds and tokenized real estate projects, signaling confidence in the technology. For example, Goldman Sachs and BNY Mellon's tokenized money market fund shares, which cover assets from BlackRock and Fidelity, represent a bridge to a $7 trillion asset class. Meanwhile, MakerDAO's integration of tokenized assets into its stablecoin (DAI) and Ondo Finance's $650 million in tokenized U.S. Treasury-backed assets underscore the growing interoperability between DeFi and traditional markets Real-World Assets Nearly Died. Now They’re Soaring In Crypto[1].

The SEC's Project Crypto is also addressing critical infrastructure gaps. Chainlink's real-time data streams for U.S. equities across 37 blockchains and Japan's security-token rules for real estate have laid the groundwork for scalable solutions. However, challenges remain, including regulatory harmonization, custody solutions, and ensuring compliance with existing securities laws. The SEC's proposed framework must balance innovation with investor protection, particularly as tokenized assets risk becoming obsolete if traditional institutions fail to adapt Real-World Assets Nearly Died. Now They’re Soaring In Crypto[1].

Projections for RWA tokenization are ambitious. Boston Consulting Group estimates the market could reach $16 trillion by 2030, while Standard Chartered projects $30.1 trillion by 2034. These forecasts hinge on institutional adoption and the ability to overcome liquidity and standardization hurdles. The SEC's role in facilitating this transition will be pivotal, as it seeks to create a regulatory environment that fosters innovation without compromising market integrity Real-World Assets Nearly Died. Now They’re Soaring In Crypto[1].

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