FG Nexus to Tokenize Stock on Ethereum as SEC Weighs 24/7 Onchain Stock Trading

FG Nexus has announced that it will allow shareholders to convert common stock into tokenized shares on the Ethereum blockchain, making it one of the earliest Nasdaq-listed firms to adopt this model. The company is working with Securitize, a regulated platform, to facilitate the move. 

FG Nexus To Tokenize Common and Preferred Stock On Ethereum

According to a press release, shareholders will have the option to convert their traditional common stock into Ethereum-based tokens. The decision also extends to the company’s perpetual preferred equity. If completed, the move will mark the first case of a dividend-paying preferred share tokenized for direct on-chain ownership and recurring payouts.

FG Nexus executives noted that the move utilizes Ethereum’s scale and reliability for regulated assets. They selected Ethereum’s network as the base layer to provide security and decentralization for tokenized equity. The network also maintains regulatory compliance while facilitating blockchain-based transactions.

It is worth mentioning that FG Nexus becomes the second company to declare its intention to tokenize its stock on Ethereum. As CoinGape reported, ETH treasury firm SharpLink Gaming had earlier revealed plans to tokenize its SBET stock.

Securitize to Provide Regulated Infrastructure for Tokenization

The project will run through Securitize’s regulated ecosystem, which includes its SEC-registered broker-dealer, Alternative Trading System (ATS), and transfer agent services. This ensures tokenized shares represent actual legal ownership of stock while still following existing restrictions on equity transfers.

In addition, Maja Vujinovic, CEO and Co-Founder of Digital Assets at FG Nexus, described Ethereum as the most suitable asset for the initiative, citing its decentralization, security, and established adoption among institutions. She also pointed to existing tokenized markets, stating that nearly $8 billion in Treasuries and funds are already operating on Ethereum.

According to a post on X by Securitize, the move positions FG Nexus among the first Nasdaq-listed firms to advance tokenization at scale. Moreover, this move aligns with the SEC’s plans to approve 24/7 stock trading on-chain.