SEC Open to Engaging with Tokenized Asset Issuers, Says Peirce

The SEC is open to collaboration on tokenizing products, according to Commissioner Hester Peirce. Speaking at the Digital Assets Summit in Singapore, Peirce emphasized the complexity of interactions between tokenized assets and traditional securities.

Tokenized securities are blockchain-based digital representations of ownership or rights in assets like stocks or bonds.
Peirce highlighted the need to understand how tokenized securities interact with other iterations of the same security.
A nuanced regulatory approach is necessary, as tokenization varies significantly based on implementation.

Tokenization is a key cryptocurrency sub-sector with real-world applications, primarily enhancing market liquidity and operational efficiency. As of Tuesday, the total on-chain tokenization market was valued at $31 billion, including $714 million in tokenized stocks.

McKinsey projects the market cap of all tokenized assets could reach $2 trillion by 2030.