The SEC’s five-year exemption plan allows qualifying venues to trade tokenized U.S. stocks through automated market makers — software that executes trades using pools of assets. When an unaffiliated third party tokenizes a company’s shares, venues must notify the issuer and give it 30 days to object.
As CoinDesk’s Tokenization Weekly explored, those rules encourage caution: objecting costs nothing, while staying silent allows trading to begin without a mechanism to withdraw that consent later.
JPMorgan Chase, whose objection appeared in Tuesday’s notice, said its decision did not rule out future participation.
“We are encouraged by the potential of tokenization but also need to be thoughtful about how our shares are represented and traded,” a spokesperson told CoinDesk. “We’ve decided not to participate in this venue at this stage but will continue to evaluate opportunities as the market develops.”
Meanwhile, Canton Strategic Holdings (CNTN) said Thursday its shares could begin trading on Canton-based marketplace TSV LLC as early as Monday, with Fairmint serving as transfer agent. That arrangement uses issuer-sponsored tokenization, avoiding the 30-day company objection process that applies to unaffiliated third-party tokenization.