CEX seeks SEC approval to launch on-chain tokenized stocks, challenging traditional brokers like Robinhood.

On June 17, according to TheBlock, Paul Grewal, chief legal officer of CEX, revealed that it is actively applying for a no-objection letter or waiver license from the SEC to launch a traditional blockchain-based stock trading service. Tokenized shares will be able to achieve T+0 settlement, 24/7 trading, and beyond, but US investors are still prohibited from participating at this time. The move will directly challenge traditional brokerages such as Robinhood and Charles Schwab, while CEX’s rival CEX has launched its xStocks service in Europe, Asia and Africa, with more than 50 tokenized stocks and ETFs. CEX is continuing to expand its non-crypto footprint following last week’s launch of an American Express co-branded credit card and Shopify/Stripe’s USDC payment partnership. During its IPO attempt in 2021, it attempted to issue tokenized COIN shares but was rejected by the SEC. The CEX was sued by the SEC in 2023 for not registering, and the lawsuit was dropped earlier this year, but it still does not have a broker-dealer license. If the CEX application is approved, it will break down the liquidity barriers between the traditional equity market and the crypto market, and may accelerate the SEC’s development of the “Security Token Classification Guidelines”.