SINGAPORE — SEC Commissioner Hester Peirce announced Tuesday that the U.S. Securities and Exchange Commission is actively encouraging dialogue with industry participants about asset tokenization, while highlighting the complex relationship between tokenized assets and their traditional equivalents.
"We're prepared to collaborate with tokenization initiatives and strongly encourage stakeholders to consult with us," Peirce stated during her keynote at Singapore's Digital Assets Summit.
Tokenized securities represent blockchain-based digital ownership of underlying assets like stocks and bonds, enabling simultaneous existence in traditional paper certificates, electronic records, and blockchain tokens.
Peirce emphasized the critical challenge of understanding interoperability between different versions of the same security, noting "The fundamental question involves how tokenized securities interact with other forms and iterations of those securities."
The commissioner advocated for sophisticated regulatory approaches to tokenization, explaining "The regulatory classification depends entirely on the specific tokenization methodology employed."
Tokenization continues to demonstrate substantial real-world utility alongside stablecoins within cryptocurrency sectors. Global financial institutions are increasingly adopting tokenization to enhance market liquidity and operational efficiency, fundamentally transforming asset issuance, trading, and management worldwide.
Current data from RWA.xyz values the on-chain tokenization market at $31 billion, including $714 million in tokenized equities. McKinsey projections suggest the tokenized asset market could approach $2 trillion capitalization by 2030.