SharpLink Becomes First Public Co to Natively Issue Equity on Ethereum, Bridging TradFi and DeFi

SharpLink Gaming, Inc. (Nasdaq: SBET), a prominent advocate for Ethereum adoption, has announced plans to tokenize its SEC-registered common stock on the Ethereum blockchain, partnering with financial technology firm Superstate as its Digital Transfer Agent. This initiative, facilitated through Superstate’s Opening Bell platform, aims to explore regulated trading of tokenized shares on Automated Market Makers (AMMs) and decentralized finance (DeFi) protocolsSharpLink & Superstate Bring SEC-Registered Equity to Ethereum^[1]. The move aligns with the SEC’s Project Crypto, a regulatory modernization effort to integrate digital assets into traditional marketsSharpLink to tokenize SBET stock on Ethereum with Superstate^[3]. Tokenized shares will remain legally equivalent to traditional equity but will be natively held on Ethereum, enabling integration with digital financial products and global investor accessSharpLink & Superstate Bring SEC-Registered Equity to Ethereum^[1].

The collaboration marks the first time a public company has natively issued equity on Ethereum. SharpLink, which holds over 838,000 ETH and ranks as one of the largest corporate ETH holders globallySharpLink & Superstate Bring SEC-Registered Equity to Ethereum^[1], seeks to demonstrate how blockchain infrastructure can enhance market efficiency and shareholder value. Superstate’s Opening Bell platform, launched in May 2025, supports SEC-registered tokenized equity, ensuring compliance while allowing shares to be stored in self-custodied walletsSharpLink & Superstate Bring SEC-Registered Equity to Ethereum^[1]. The partnership also aims to test how tokenized equities might trade on AMMs, potentially expanding liquidity and redefining market structureJoe Lubin’s SharpLink to Tokenize SBET Shares on Ethereum via …^[2].

SharpLink’s co-CEO Joseph Chalom emphasized the initiative’s significance, stating it reflects the company’s belief in Ethereum’s role in the next generation of capital marketsSharpLink & Superstate Bring SEC-Registered Equity to Ethereum^[1]. Chairman Joseph Lubin, co-founder of Ethereum, highlighted the project as a step toward bridging traditional finance (TradFi) with composable DeFi on EthereumSharpLink & Superstate Bring SEC-Registered Equity to Ethereum^[1]. The company’s ETH treasury strategy, initiated in June 2025, has generated over 3,815 ETH in staking rewards, reinforcing its commitment to Ethereum-based financial infrastructureSharpLink & Superstate Bring SEC-Registered Equity to Ethereum^[1].

Market reactions to the announcement have been mixed. While the initiative underscores SharpLink’s strategic alignment with Ethereum, the company’s stock (SBET) fell approximately 8% in early trading following the announcementJoe Lubin’s SharpLink to Tokenize SBET Shares on Ethereum via …^[2]. This decline contrasts with SharpLink’s earlier stock rally in June 2025, when its shares surged over 100% after announcing the ETH treasury pivotSharpLink to tokenize SBET stock on Ethereum with Superstate^[3]. The company’s tokenization efforts also face broader market challenges, including Ethereum’s recent price drop below $4,000, which triggered significant liquidations for large holdersEther Whale Books $45M Loss as ETH Falls Below $4K^[6].

The project’s potential to enable AMM trading of tokenized equities could set a precedent for compliance-driven innovation in DeFi. Superstate CEO Robert Leshner described the partnership as a milestone, noting SharpLink’s role in advancing Ethereum-based capital marketsSharpLink & Superstate Bring SEC-Registered Equity to Ethereum^[1]. If successful, the initiative could pave the way for other public companies to tokenize assets on blockchain networks, enhancing liquidity and reducing reliance on traditional intermediariesJoe Lubin’s SharpLink to Tokenize SBET Shares on Ethereum via …^[2].

SharpLink’s collaboration with Superstate reflects a broader trend of corporate adoption of blockchain for asset management. Galaxy Digital, for instance, recently tokenized its shares on Solana via Superstate’s platformJoe Lubin’s SharpLink to Tokenize SBET Shares on Ethereum via …^[2]. However, regulatory and market uncertainties persist, including potential impacts of Ethereum price volatility on accounting and financial reportingSharpLink & Superstate Bring SEC-Registered Equity to Ethereum^[1]. The company’s forward-looking statements, including plans to tokenize equity and expand DeFi integration, remain subject to risks such as regulatory changes and market fluctuationsSharpLink & Superstate Bring SEC-Registered Equity to Ethereum^[1].