A Turning Point in Market Structure

For decades, the U.S. securities industry has operated under infrastructure and regulations designed for a pre-digital age. But a tectonic shift is underway. In an unprecedented move, SEC Commissioner Hester Peirce has proposed a conditional exemption that could allow firms to issue, trade, and settle securities using distributed ledger technology (DLT) — without immediately being bound by certain legacy regulatory requirements.

For those of us building financial tools for the next generation, this is more than just a policy tweak — it’s the beginning of a new financial era.


What the SEC Is Proposing

Commissioner Peirce’s proposal isn’t a blank check. It’s a carefully crafted framework that opens up space for responsible experimentation. Under this exemption, qualifying firms would be able to:

  • Operate DLT-based trading systems for eligible tokenized securities

  • Bypass the need to immediately register as national securities exchanges or broker-dealers

  • Conduct operations under a sandbox-style model, provided they meet strong investor protection requirements

Firms would still need to ensure:

  • Fraud prevention & market integrity protocols

  • Clear disclosures of token mechanics and smart contract risks

  • Strong cybersecurity protections

  • Recordkeeping & regulatory oversight

  • Financial and operational soundness

This is not deregulation. It’s smart regulation — finally catching up to the promise of programmable finance.

View the SEC proposal here →


Why It Matters: Legacy Tech Meets Digital Rails

The capital markets still largely run on batch processing, T+2 settlement, and fragmented databases. Even the DTCC, which processes quadrillions of dollars annually, acknowledges the inefficiencies. That’s why they launched the Smart NAV initiative, which tokenizes mutual fund data and feeds it to blockchain-native environments — a clear signal from the industry’s core that DLT isn’t fringe — it’s infrastructure.

“There is no reason why the core plumbing of the markets should remain stuck in the 1990s.”
— Thomas Carter, CEO of Deal Box

DLT opens the door to real-time settlement, 24/7 trading, full auditability, and fractionalized ownership of previously illiquid assets — from startup equity to real estate, revenue-sharing agreements, and royalties.

This is why the SEC’s move matters: it legitimizes tokenized securities as a core component of tomorrow’s markets.


The Tokenization Opportunity: A $30 Trillion Market Awakens

Analysts from Boston Consulting Group project that tokenized real-world assets (RWAs) will exceed $16 trillion by 2030, but more recent estimates, especially following BlackRock’s and Citi’s on-chain experiments, now point toward $30–35 trillion in tokenized assets globally.

What counts as a tokenized security?

  • Private equity shares

  • Convertible notes

  • Real estate equity and REITs

  • Debt instruments (loans, bonds, promissory notes)

  • Intellectual property royalties

  • Revenue-share contracts

  • Investment fund shares

  • Music catalogs and digital rights

In short: anything of value that can be digitized, fractionalized, and traded under enforceable rights.


How Deal Box Saw This Coming

We didn’t pivot into tokenization — we were built for it.

Since 2020, Deal Box has been designing systems to bring compliance, liquidity, and investor access to private markets. Long before the SEC acknowledged the need for a DLT regulatory exemption, we were solving for:

  • Investor onboarding & KYC for tokenized offerings

  • Smart compliance layers to satisfy SEC, FinCEN, and IRS

  • Digital asset securities wrapped in Reg D, Reg A+, and Reg CF frameworks

  • Custody and cap table tools for tokenized equity

  • Direct-to-investor raise mechanics using wallet-based settlement

We didn’t just dream of a tokenized future — we built it and brought founders, funds, and financial institutions along for the ride.

Explore our breakdown:
 How Bitcoin Unlocked the $30 Trillion RWA Market


Institutional Moves Confirm the Trend

The SEC isn’t acting in a vacuum. Here’s a sample of institutional moves over the last 18 months:

  • BlackRock tokenized U.S. Treasury and money market fund shares on Ethereum

  • JPMorgan launched its Onyx blockchain and settled over $1B in collateral with tokenized assets

  • Franklin Templeton now offers tokenized mutual funds accessible via blockchain wallets

  • KKR and Hamilton Lane tokenized portions of private equity funds to expand access to smaller investors

  • Citi announced that tokenization could unlock up to 10x liquidity for private markets

The barriers are no longer technological — they’re legal and regulatory. With this SEC exemption, that dam is starting to break.


The Deal Box Edge: Infrastructure for a New Financial Operating System

Our mission is simple: create a smarter, faster, more inclusive way to fund innovation.

And that starts with infrastructure. Deal Box offers:

A tokenization engine

  • Converts equity, debt, or revenue-sharing contracts into digital asset securities

  • Supports issuance on compliant, high-performance blockchains like XRP Ledger, Avalanche, and Provenance

 Smart compliance rails

  • KYC/AML, accredited investor verification

  • Reg D, Reg A+, Reg CF, and international compliance support

  • Embedded wallet integration + transaction monitoring

 Investment platform + liquidity paths

  • Front-end investment dashboards

  • Wallet-based access to tokenized shares

  • Secondary trading and custodial integration coming Q3 2025

In short, we offer a full-stack solution to bring private markets into the programmable economy.


Tying It All Together: A Timeline of Deal Box Pioneering Moments

Let’s be clear — we’ve been pushing this conversation forward for years. Don’t just take our word for it:

Every article. Every campaign. Every platform feature. It was all designed around a single core belief:
Tokenized capital markets are inevitable — and better.


What Founders, Funds, and Family Offices Should Do Now

1. Founders:
Prepare your cap table for digital securities. Raising through traditional notes or safes? We can help you convert those into smart securities with full investor access and custody options.

2. Fund Managers:
Tokenize your fund shares and unlock compliant secondary trading. Give your LPs liquidity — and attract younger, blockchain-native investors.

3. Investors & Family Offices:
Look beyond public markets. Tokenization brings institutional-grade alternatives to your fingertips. Gain access to real estate, startups, and private credit — with wallet-native settlement and transparent tracking.


Deal Box Is Building the Bridge

As the SEC brings regulatory clarity to digital finance, Deal Box is proud to be the bridge between the old system and the new standard.

This isn’t the future.
It’s now.
And we’re ready.


📚 Sources

Thomas Carter

Author Thomas Carter

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