Tokenized versions of U.S. stocks should give investors the same legal and economic rights as the underlying shares, according to OKX US CEO Roshan Robert, as the Securities and Exchange Commission begins a five-year pilot for blockchain-based stock trading.
The framework described in the SEC exemption requires tokenized shares to match conventional stock on core shareholder entitlements, including ownership interests, dividends, voting rights and claims on company assets in a liquidation. Robert argues that a change in trading or settlement technology should not change an investor’s claim on the issuer.
Same stock, same rights
Robert’s central point is that tokenization should not create a second-class version of a public company’s shares. In his view, if a token represents a listed stock, the holder must receive the same bundle of rights attached to the traditional security.
That parity requirement is also a key feature of the SEC’s temporary approach. The exemption allows tokenized trading only where the blockchain-based version provides the rights and privileges of the equivalent conventional share, rather than a reduced or modified claim.
Why parity matters for market structure
Supporters of this approach see equal treatment as a basic investor-protection measure. If tokenized stocks carried weaker rights than ordinary shares, the market could split into instruments tied to the same company but offering different legal and economic outcomes.
Robert said preserving shareholder equivalence is only one part of making tokenized equity markets credible. Trading venues must also provide fair access, guard against front-running and manipulation, publish reliable market data and keep records that can be audited.
Issuer objections could limit third-party tokenization
The exemption does not give tokenization platforms an unrestricted right to list blockchain-based versions of public stocks. Issuers are allowed to object when a third party seeks to tokenize their shares.
Under the process outlined in the exemption, a company can block trading under the pilot if it objects within 30 days after receiving notice. That means participation may depend not only on platform readiness and regulatory compliance, but also on whether the underlying issuer accepts the arrangement.
Pricing and data collection remain open questions
One unresolved issue is how tokenized shares should be priced. Robert pointed to the possibility that automated market makers could derive prices from liquidity pools rather than from the primary markets where the conventional shares trade.
That could create tension with Regulation NMS if blockchain venues produce prices that diverge from established equity market structure. The SEC’s five-year pilot is intended to collect evidence on usage, liquidity and price alignment, helping regulators decide whether rules for tokenized stock trading should eventually be made permanent, changed or withdrawn.
Source: crypto.news