SharpLink Gaming (SBET) to Tokenize Equity on Ethereum Blockchain with Superstate

SharpLink Gaming (SBET), an Ethereum treasury firm led by Joseph Lubin, announced plans Thursday to tokenize its company equity on the Ethereum blockchain, capitalizing on the growing stock tokenization trend. The Minnesota-based company has selected tokenization expert Superstate as its digital transfer agent. The equity token will be natively issued via Superstate's Opening Bell platform, a system engineered to issue SEC-registered shares directly on blockchain infrastructure. This development aligns with increasing momentum for tokenizing financial instruments like equity across crypto markets. Numerous tokenized equity offerings have launched recently, primarily for non-U.S. investors, from platforms like Robinhood, Gemini with Dinari, Ondo Finance's Global Markets, and xStocks by Kraken and Backed Finance, though some products face concerns over limited shareholder rights and regulatory fragmentation. According to the release, SharpLink's tokenized stock will be legally equivalent to traditional equity but can be held in digital wallets and integrated with on-chain protocols. Additionally, SharpLink and Superstate will explore potential trading of these shares on decentralized exchanges (DEXs) and automated market makers (AMMs), which would test how tokenized securities can operate in smart contract-based markets while adhering to U.S. securities laws. This initiative follows a similar move by digital asset investment firm Galaxy (GLXY) to tokenize its Class A common shares on Solana (SOL) using Opening Bell. In early Thursday trading, SBET was down 7% amid a sharp decline in ETH price below $4,000.