20 Tokenized US Stocks Go Live for Trading on HTX, Backed by Justin Sun

The crypto exchange tied to Justin Sun rolls out blockchain-based versions of US equities, as its founder sidesteps questions on his prior SEC case.

HTX has launched a tokenized stock trading feature covering 20 US equities, according to reports from crypto.news and UNLOCK Blockchain. The product lets users on the exchange gain price exposure to well-known American companies through blockchain-issued tokens rather than traditional brokerage accounts.

Justin Sun, the founder of Tron who has long been associated with HTX, is credited with driving the launch. Tokenized stocks are digital representations of equity shares, typically backed by underlying assets held by a third party or issuer. They allow crypto users to trade exposure to stocks around the clock, outside the hours of conventional stock exchanges.

The move reflects a broader push across the crypto industry to merge traditional finance products with blockchain rails. Several platforms have experimented with tokenized versions of equities, treasuries, and other real-world assets over the past two years. Proponents argue tokenization can widen access to US markets for traders outside American brokerage systems and allow settlement without the delays of legacy infrastructure.

However, tokenized stock products raise questions about custody, regulatory classification, and investor protection. Unlike shares bought through a regulated broker, tokenized versions depend on the issuer’s backing arrangements and the jurisdiction under which they are offered. Regulators in multiple countries have scrutinized similar products in the past, questioning whether they constitute securities offerings subject to existing law.

According to UNLOCK Blockchain, Sun declined to address questions about his earlier legal dispute with the US Securities and Exchange Commission when discussing the new HTX offering. The SEC previously brought civil charges against Sun and entities tied to his crypto projects, alleging unregistered securities sales and other violations. That case has remained a point of scrutiny for Sun’s ventures in the years since.

The launch comes as HTX, formerly known as Huobi, continues to expand its product lineup beyond standard cryptocurrency trading. Offering tokenized exposure to US stocks positions the exchange alongside other platforms seeking to capture demand from traders who want equity exposure without leaving the crypto ecosystem.

Market Impact

The launch could draw additional trading volume to HTX from crypto users seeking exposure to US equities without opening traditional brokerage accounts. It also adds to a wider trend of exchanges blending crypto and traditional asset classes, a development regulators continue to watch closely.

Because tokenized stock products operate in a regulatory gray area in many jurisdictions, their growth may prompt further scrutiny of how such instruments are classified and overseen. Sun’s history with the SEC adds another layer of attention to how HTX positions and markets the new offering going forward.

The rollout underscores how crypto exchanges are increasingly blurring the line between digital assets and traditional securities. Whether regulators respond to this specific product remains to be seen.

Frequently Asked Questions

What did HTX launch?

HTX introduced tokenized trading for 20 US stocks, letting users gain blockchain-based price exposure to American equities.

Who is behind the launch?

Justin Sun, the Tron founder long associated with HTX, is credited with leading the rollout of the tokenized stock feature.

Are tokenized stocks the same as owning real shares?

No. Tokenized stocks are digital representations backed by an issuer or custodian, and they do not carry the same legal rights as shares bought through a regulated broker.

Did Sun comment on his past SEC case?

According to UNLOCK Blockchain, Sun declined to discuss his previous legal dispute with the US Securities and Exchange Commission when asked about the new product.

Original source: AltcoinGordon

Syndicated coverage. Originally reported by altcoingordon.com.