SharpLink Gaming tokenizes stocks on the Ethereum blockchain

SharpLink Gaming, a Nasdaq-listed company, plans to directly tokenize its SEC-registered common stock on the Ethereum blockchain. For this purpose, the company has appointed the financial technology firm Superstate as its digital transfer agent. The tokenization will be implemented via Superstate's Opening Bell platform, enabling SBET shareholders to natively hold their shares on Ethereum while still complying with regulatory requirements. According to SharpLink, the tokenized shares remain legally equivalent to traditional book entries but can be stored in personal wallets and integrated into digital financial products. The company claims to be the first publicly traded company to tokenize its stock on Ethereum, although competitors like BTSC have already announced similar steps. This move aligns with the SEC's "Project Crypto" initiative announced in July, which aims to reduce regulatory hurdles for the crypto industry. SEC Chairman Paul Atkins seeks to introduce an "Innovation Exemption" for certain digital assets this year. Superstate has previously collaborated with companies like Galaxy Digital and the Solana Treasury firms Forward Industries and Upexi to tokenize stock over the Solana blockchain. The partnership follows SharpLink's strategic shift earlier this year from gambling marketing to a crypto treasury. In this transition, Ethereum co-founder Joseph Lubin joined as chairman, supported by a $425 million funding round led by Consensys. SharpLink and Superstate are exploring how tokenized stocks could be traded on automated market makers and other DeFi protocols without violating securities laws. Meanwhile, Ethereum, the world's second-largest cryptocurrency, has seen a decline of nearly 5% within 24 hours.