Stocks on Blockchain: A Clash of Titans

The New Frontier: Blockchain in Stock Trading

A battle is brewing in the world of finance, centered around trading stocks using blockchain technology. Major players like Robinhood and BlackRock are stepping into the arena, drawn by the promise of:

• 24/7 trading
• Instant settlements
• Reduced middlemen
• New collateralization opportunities

Citadel's Concerns

However, Citadel, a titan of traditional finance, has raised serious concerns. They are wary of DeFi platforms like Uniswap, which facilitate the swapping of billions in crypto daily. Soon, these platforms may handle tokenized stocks of giants like Nvidia and Apple.

Citadel fears that if the SEC grants certain exemptions, these platforms could operate as brokerages without traditional legal responsibilities.

The Counterattack

In response, Uniswap's founder accused Citadel of protecting its own interests. Other crypto figures echoed this sentiment, arguing that Citadel is attempting to stifle innovation. Both sides present compelling arguments:

• Citadel's business model could be threatened.
• Liquidity concerns are also valid.

The Mainstreaming of Blockchain

It's noteworthy how mainstream these blockchain terms have become. Just a few years ago, they were known only to crypto enthusiasts. Today, they are part of discussions with the SEC, signaling that blockchain technology is here to stay.

The Uncertain Outcome

The outcome of this battle is far from certain. Citadel, backed by billionaire Ken Griffin, is a formidable opponent. However, Andreessen, a powerful VC firm, also wields significant influence.

For now, Citadel may slow down tokenized equities, but stopping them completely seems unlikely.