Dragonfly Flags Limits: SEC Tokenized Stocks May Sidestep Crypto Value

The SEC tokenized stocks plan advances, yet Dragonfly partner Rob Hadick says benefits for crypto and Ethereum remain unclear. He spoke at TOKEN 2049 in Singapore and pointed to RWA tokenization, layer-2 choices, and private blockchains as the key reasons.

SEC tokenized stocks and RWA tokenization: what is moving now

The SEC is weighing a framework to let tokenized stocks trade on crypto exchanges. Reports describe talks on market structure and oversight. The pitch highlights 24/7 trading and operational efficiency for TradFi.

He then addressed crypto implications. The upside for Ethereum and other public chains “remains uncertain,” he said. Expectations that tokenized equities automatically lift crypto may not match how systems are built.

In September, Nasdaq filed for a rule change to list and trade tokenized stocks. That filing put SEC tokenized stocks into a formal venue process. It also moved RWA tokenization from theory toward exchange rulebooks.

Dragonfly’s Rob Hadick: institutions prefer private blockchains

Hadick said major firms “don’t want to be directly on these general-purpose chains.” He cited Robinhood and Stripe as examples testing or building their own blockchains. The theme is control, not publicity.

“They don’t want to share the economics,” he added. They want to control block space, privacy, and the validator set. They also want to define the execution environment end to end.

This control mindset pushes institutions toward private blockchains and enterprise rails. It reduces exposure to memecoins and traffic spikes on public chains. It also aligns with compliance playbooks and risk reviews.

At TOKEN 2049, the same logic surfaced across RWA tokenization panels. Firms emphasized governance, audit, and predictable throughput. Builders framed SEC tokenized stocks as a market-hours and controls problem.

Layer-2s, private L1s, and “leakage” for Ethereum

Hadick said layer-2 choices can create “leakage.” Value may not flow back to Ethereum or the wider crypto ecosystem. It depends on where fees accrue and how settlement closes.

If institutions deploy private layer-1 blockchains, the path is “a little less clear.” The question becomes how any value reaches public chains. Bridges, custody, and post-trade rules decide the flow.

He noted earlier permissioned blockchains launched and later stalled. Now many teams test hybrid chains. Those designs keep control but retain a permissionless option for later phases.

“They want their own L1s and L2s,”

he said.

“But they want an environment that they control.”

That line summarized the Dragonfly view on RWA tokenization. Architecture choices drive who captures value.

Nasdaq, NYSE, VanEck: SEC meetings and tokenized stocks data

A number of issuers and venues recently met the SEC on tokenized equities. Names include VanEck and the NYSE. The agenda covers listings, surveillance, and investor protections.

Nasdaq’s September filing sought a rule change to list tokenized stocks. That step put the effort on a mainstream timetable. It also showed how SEC tokenized stocks could appear on large venues.

The RWA tokenization base remains small in tokenized equities. RWA.xyz shows about $735 million, or 2.3% of on-chain RWA value. The number sets a scale for current tokenized stocks adoption.

Market voices remain split on impact for Ethereum. Tom Lee, Jan van Eck, and Joseph Lubin expect Wall Street activity to support public networks. Hadick provided a reserved counterpoint focused on rails, not headlines.

He kept the focus on SEC tokenized stocks, RWA tokenization, and institutional priorities. Uptime, privacy, and validator control guided his comments. Those factors shape how tokenized equities touch the crypto stack.