Ethereum Enables the First SEC-Approved Public Equity Tokenization, Connecting Traditional Finance with DeFi

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SharpLink Gaming, Inc. (Nasdaq: SBET) has joined forces with Superstate, a fintech company, to issue its SEC-registered common shares as tokens directly on the

blockchain. This marks the first time a publicly listed firm has issued equity natively on Ethereum. Using Superstate’s regulated onchain issuance platform, the project aims to showcase how blockchain technology can boost shareholder benefits, streamline market operations, and update capital market practices. The tokenized shares, which hold the same legal status as traditional book-entry equity, will be accessible through self-custody digital wallets and DeFi products, broadening investment opportunities for global participants.

Through this partnership, SharpLink and Superstate will investigate the regulated trading of these tokenized shares on Automated Market Makers (AMMs) and other DeFi protocols, in line with the SEC’s Project Crypto initiative. The goal is to advance securities regulation for blockchain-based assets and markets. If successful, compliant trading of tokenized securities on AMMs could provide greater liquidity and utility for investors, while making capital movement between issuers and markets more efficient.

SharpLink’s Co-CEO Joseph Chalom highlighted that issuing equity as tokens on Ethereum signals a major evolution in global capital markets. “This is more than a technological step—it’s a vision for the future of finance,” he said. Joseph Lubin, SharpLink’s Chairman and Ethereum co-founder, emphasized that this move strengthens Ethereum’s position as a core platform for next-generation financial systems. Lubin also noted SharpLink’s significant ETH holdings, with over 838,000 ETH acquired and 3,815 ETH earned from staking since June 2025.

Robert Leshner, CEO of Superstate, called the collaboration a “landmark for an Ethereum-focused organization,” and pointed to the opportunity to grow the tokenized equity landscape. The tokenized shares will maintain SEC compliance while integrating with modular DeFi protocols, helping to connect traditional finance (TradFi) with decentralized networks. The initiative will be powered by Superstate’s Opening Bell platform, which enables companies to tokenize SEC-registered equity on the blockchain.

SharpLink’s broader ETH treasury plan, launched in June 2025, places it among the largest corporate holders of Ethereum. Its purchase of 10,000 ETH from the Ethereum Foundation in July 2025 further demonstrates its dedication to the Ethereum ecosystem. By utilizing Ethereum’s smart contracts, SharpLink intends to show how public companies can use blockchain to drive capital market innovation.

This project supports the SEC’s ongoing efforts to update regulations for digital assets. Project Crypto, a central part of the SEC’s modernization strategy, aims to encourage innovation while maintaining regulatory standards. Tokenized equities traded on AMMs could transform market dynamics by allowing for efficient and transparent securities trading, though the initiative still faces regulatory and market uncertainties.

SharpLink’s announcement includes projections about tokenizing shares and expanding staking, which are subject to risks and uncertainties. These include ETH price volatility, possible changes in securities regulations, and competition from other products. The company also mentioned that fluctuations in crypto asset values could present accounting challenges under U.S. GAAP.

The partnership between SharpLink and Superstate marks a major move toward merging blockchain with traditional finance, with potential impacts on liquidity, accessibility, and regulatory progress in capital markets.