CEX is exploring the re-listing of stock tokens

On January 24, according to The Information, CEX is exploring the reintroduction of stock tokens on its platform, after discontinuing the product in 2021. Stock tokens are digital tokens representing shares of publicly listed companies. Investors can buy fractions of stocks such as Apple or Microsoft without purchasing entire shares. These tokens are held and settled on the blockchain and track the underlying asset prices in real-time. CEX launched its stock token service in April 2021, initially offering Tesla stock, and later expanded to include CEX, Strategy, Microsoft, and Apple stocks. This move drew regulatory attention, with the UK Financial Conduct Authority (FCA) and the German Federal Financial Supervisory Authority (BaFin) questioning whether these tokens violate securities laws. In July 2021, CEX shut down the service. Haider Rafique, Global Managing Partner at CEX, told The Information that CEX is also paying attention to this area. In the US, traditional financial institutions are also attempting to enter the market, with the New York Stock Exchange (NYSE) and Nasdaq seeking regulatory approval to launch stock token products. A CEX spokesperson told The Information, “Exploring the possibility of offering stock tokens is a natural next step in our mission to bring traditional finance and cryptocurrency closer together.” However, legal hurdles still exist. Stock tokens are among several unresolved issues in the Crypto Market Structure Bill currently being pushed through Congress. Industry insiders say that under current legislation, the launch of such products would be delayed. CEX CEO Brian Armstrong publicly opposes the bill, calling for amendments to allow the SEC to grant exemptions for certain stock token offerings under standard securities rules.