Former FTX Europe chief targets U.S. tokenized stock trading with new SEC exemption
Perpetuals.com, led by former FTX Europe executive Patrick Gruhn, plans to launch a U.S. marketplace for tokenized stocks under the SEC's new five-year innovation exemption. This initiative follows a similar move by an OKX–ICE joint venture, aiming to enable blockchain-ba…
Intelligence analysis by Gemini 2.5 Flash
A Nasdaq-listed fintech company, Perpetuals.com, is leveraging a recent SEC innovation exemption to introduce tokenized U.S. stock trading on public blockchains. This venture is spearheaded by Patrick Gruhn, who previously led FTX Europe and was involved in early tokenized stock offerings, marking a significant step towards integrating digital assets with traditional finance under a n…
Imagine your favorite company's stock, like a tiny piece of ownership, could be traded super fast, all day and night, using special digital tokens on a computer network, just like trading digital coins. A company called Perpetuals.com, run by someone who used to work at a big digital money place, wants to let people buy and sell these digital stock pieces in the U.S. The government's money police, the SEC, has given them a special pass to try this new way, as long as the digital pieces act exactly like real stocks, giving you the same rights. It's like making a digital twin of a toy car that drives just like the real one, but on a special digital track.
Analysis
Patrick Gruhn
Patrick Gruhn, the CEO of Perpetuals.com, brings a notable background to this new venture, having previously co-founded Digital Assets AG, a company instrumental in developing early stock-linked tokens for major crypto exchanges like Binance and FTX. His prior experience includes leading FTX Europe before the broader FTX Group's collapse in November 2022. This history positions Gruhn as a seasoned figure in the tokenization space, albeit one with a past association with a high-profile crypto failure.
The current initiative with Perpetuals.com represents a return to tokenized equities for Gruhn and his team, building on their earlier work. While their previous products, such as those offered by Binance, faced regulatory scrutiny and lacked full shareholder rights, the new framework under the SEC aims to address these shortcomings. Gruhn's leadership suggests a strategic effort to re-enter the market with a more compliant and robust offering, leveraging lessons learned from past endeavors and adapting to evolving regulatory landscapes.
SEC Exemption
The Securities and Exchange Commission's (SEC) new five-year "innovation exemption," introduced in September, is a pivotal regulatory development enabling companies like Perpetuals.com to operate tokenized securities venues without registering as traditional exchanges. This framework is designed to foster innovation by allowing U.S. stocks to be traded on public blockchains, provided certain conditions are met. A key requirement is that tokenized shares must carry the same shareholder rights as ordinary shares, including dividends and voting rights, addressing a critical flaw in earlier tokenized stock models.
This exemption also includes a 30-day objection period for companies whose shares are targeted for tokenization, providing a safeguard against unwanted listings. Perpetuals.com is the second entity to pursue this path, following a joint venture between crypto exchange OKX and NYSE parent Intercontinental Exchange (ICE). The SEC's move signals a cautious yet progressive approach to integrating blockchain technology into mainstream financial markets, aiming to balance innovation with investor protection and market integrity.
Perpetuals.com
Perpetuals.com (PDC), a Nasdaq-listed fintech company, is positioning itself at the forefront of tokenized U.S. stock trading under the new SEC framework. The company's plan involves operating its U.S. marketplace through Kephas Corporation, a Delaware-based subsidiary, utilizing permissioned automated market maker (AMM) liquidity pools. Initially, trading will occur on Kronos X Public, an Ethereum-compatible layer-2 blockchain developed by Perpetuals, pairing tokenized stocks with USDC.
The company already has a footprint in Europe, providing trading technology for Perpetual Markets MTF, a Cyprus-based marketplace authorized under both Europe's MiFID II framework and the EU's Markets in Crypto-Assets regulation. With reported assets of $65.2 million and plans for tokenized commodity offerings, Perpetuals.com demonstrates a broader ambition in the digital asset space. While a firm launch date for the U.S. venue is pending, with mid-November as the earliest possibility, the company is focused on completing technical and compliance preparations, including smart-contract security reviews and updated disclosures, to ensure a secure and compliant rollout.
Key points
- Perpetuals.com plans to launch a U.S. tokenized stock trading venue under the SEC's new five-year innovation exemption.
- The company is led by Patrick Gruhn, former chief of FTX Europe, who has prior experience in developing stock-linked tokens.
- The SEC exemption requires tokenized shares to carry full shareholder rights, including dividends and voting.
- Trading will occur on Kronos X Public, an Ethereum-compatible layer-2 blockchain, using permissioned AMM liquidity pools.
- Perpetuals.com aims for a mid-November launch, pending technical and compliance preparations, and will initially pair tokenized stocks with USDC.
This initiative could significantly enhance market efficiency by enabling 24/7 trading of U.S. stocks on blockchain rails, potentially attracting a new class of investors and increasing liquidity. The SEC's innovation exemption provides a clear regulatory path, fostering confidence and potentially accelerating the broader adoption of tokenized securities in traditional finance.
Despite the regulatory framework, the success of tokenized stock trading faces challenges, including market adoption, technical complexities, and potential security vulnerabilities in smart contracts. The past regulatory issues with similar offerings and the association with FTX's collapse could also create skepticism among investors and regulators, hindering widespread trust and participation.
