Cryptoupdated 1h ago2 min read
Perpetuals.com Files SEC Notice To Trade Tokenized U.S. Stocks On Kronos X Public
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Perpetuals.com seeks U.S. tokenized stock trading under SEC's five-year Innovation Exemption. It will operate permissioned AMM liquidity pools on Cronos X Public for eligible users.
7 outlets told this the same way.
Perpetuals targets tokenized stocks
Perpetuals.com, led by CEO Patrick Gruhn, filed a notice on Wednesday to operate a tokenized securities venue under the Securities and Exchange Commission's five-year "innovation exemption," which allows certain marketplaces to trade U.S. stocks on public blockchains without registering as traditional securities exchanges. Perpetuals.com said it plans to offer tokenized U.S. stocks under the SEC's innovation exemption after a required 30-day notice period, with trading potentially starting in mid-November at the earliest.
Perpetuals.com said the exemption, introduced in September, requires tokens to carry the same shareholder rights as ordinary shares, including dividends and voting rights, while giving companies 30 days to object to having their shares traded on a tokenized securities venue. Perpetuals.com said it would operate permissioned automated market maker liquidity pools initially on Kronos X Public, an Ethereum-compatible layer-2 blockchain developed by the company, and it said each pool would pair a tokenized U.S. stock with a digital asset initially expected to be a form of USDC.
Gruhn links to FTX-era work
Patrick Gruhn said, "The Perpetuals team has long been trailblazers in tokenization, and this expansion into the U.S. allows us to further utilize our platform and deep expertise," as Perpetuals.com positioned the move as a return to tokenized equities. Digital Assets AG, a Swiss-based tokenization company, worked with German investment firm CM-Equity to bring digital tokens linked to stocks such as Tesla and Coinbase to crypto traders.
Digital Assets AG was later acquired by FTX Group, becoming part of FTX Europe, which Gruhn led before the crypto exchange group's collapse in November 2022. Binance discontinued its stock tokens offering in July 2021 amid regulatory scrutiny, including concerns raised by German regulator BaFin over the lack of a published securities prospectus, and it said those earlier products differed from the securities envisioned under the SEC's new framework.
SEC conditions and next steps
The SEC's innovation exemption requires tokens to carry the same shareholder rights as ordinary shares, including dividends and voting rights, while the framework gives companies 30 days to object to having their shares traded on a tokenized securities venue. The SEC's Order grants exemptive relief for the trading of National Market System securities on automated market makers, which it described as blockchain-based smart contracts that execute transactions against assets supplied to liquidity pools.
Issuers can opt out of trading on Tokenized Securities Venues, but must do so within 30 days of receiving a TSV's notice, and it said a valid objection prevents the TSV from trading the tokenized NMS stock. Perpetuals.com said it has not set a firm launch date yet, and it said it plans to publish updated disclosures, including live smart-contract addresses, before trading begins, with trading dependent on completion of market-data and compliance arrangements and smart-contract security reviews.