Stove Finance Seeks SEC Support for Tokenized Stock Infrastructure Standards

Stove Finance urged the SEC to support broker-dealers developing or adopting onchain infrastructure for securities records, reconciliation and delivery, as tokenized stocks move into blockchain markets. The company said traditional and onchain systems need clearer ways to coordinate these functions.

The comment also recommends that the SEC encourage broker-dealers, transfer agents, custodians and onchain trading venues to collaborate on interoperability and common standards. It proposes controlled pilots to test how institutions can connect their systems.

The proposed work covers converting assets between systems, replenishing and returning inventory, and reconciling records. It also addresses settlement and delivery status, along with how institutions handle dividends, stock splits and other corporate actions.

Tokenized stocks are entering decentralized finance settings such as automated market makers and liquidity pools. Stove Finance said settlement, asset servicing and interoperability raise infrastructure questions beyond trade execution.