Securitize's stock rose by 14% on Thursday, peaking at a 24% increase, after the Securities and Exchange Commission (SEC) announced a temporary framework allowing the trading of tokenized publicly traded U.S. stocks. This order, while not a formal regulatory change, is set to last for five years and aims to foster innovation while ensuring investor protections.
Tokenization, which involves registering ownership rights of real-world assets on a digital ledger, offers advantages such as enhanced trading capabilities.
Securitize, which went public in July and holds about 9% of the tokenized market by assets under management, is well-positioned to benefit from the growing interest in real-world asset tokenization, which has seen its market value rise to $38.51 billion, a 70% increase over the past year.
Needham Securities analyst John Todaro has initiated coverage of Securitize with a buy rating, emphasizing the importance of securing a broad customer base and noting the company's partnerships with major firms like BlackRock and NYSE