Fidelity Urges SEC to Allow Broker-Dealers to Trade Tokenized Securities on ATS
Fidelity has formally urged the SEC’s crypto task force to expand regulatory permissions so broker-dealers can trade tokenized securities on alternative trading systems and integrate traditional finance infrastructure on-chain. The proposal frames tokenization and on-chain rails as ways to boost liquidity, shorten settlement times, and bring legacy market plumbing into programmable environments while still operating under broker-dealer supervision.
The filing matters because it signals strong institutional appetite for clearer pathways from paper-based markets to on-chain execution and custody. If the SEC responds with accommodating guidance or rule changes, markets could see faster institutional adoption and new product flows, but regulators will still need to address custody, compliance and investor-protection guardrails. Fidelity’s stance increases pressure on policymakers to reconcile market structure rules with emerging tokenized asset models.