CMC Markets Hints at Tokenised Asset Launch

CMC Markets (LON: CMCX) has hinted at the upcoming launch of tokenised assets under its capital markets arm, CMC CapX. The teaser follows recent announcements from Robinhood and several crypto exchanges launching stock tokenisation services.

The London-headquartered firm also stated that it plans to use its “partnership with StrikeX Technologies” to support its asset tokenisation plans.

“We’re turning real-world investment opportunities (like shares in private companies) into digital tokens on the blockchain,” a LinkedIn post by CMC CapX stated on Wednesday.

Tokenised Assets on the Capital Markets Platform

CMC Markets launched CMC CapX, its capital markets platform, in 2022. It offers investors access to capital raisings, including IPOs and secondary placings. The platform also connects buyers and sellers with a range of unlisted investment opportunities.

These capital markets services run alongside CMC’s core offering of contracts for differences (CFDs). The broker also provides institutional services, including trading infrastructure and technology. Among its clients, Revolut is a well-known name in Europe and uses CMC Connect’s infrastructure to offer CFD products in three countries.

Read more: Tokenised Stocks Are Here, but Do They Really Bring Added Value over CFDs?

As reported earlier by FinanceMagnates.com, CMC took an initial stake in StrikeX in mid-2023, marking its move into blockchain technology. In May this year, it increased that stake from 33 per cent to a majority 51 per cent, gaining control over StrikeX’s technology and product direction.

Notably, the increased stake came after CMC wrote off its initial £2.8 million investment as unrecoverable. Despite the write-down, the broker confirmed it would continue to support StrikeX’s “strategic objectives”.

This latest announcement suggests the broker’s blockchain investment is beginning to take shape.

Tokenised Assets Gain Traction

Last week, Robinhood revealed plans to offer tokenised stocks in Europe. The commission-free broker joins other platforms – including Kraken, Gemini, and Bybit – already offering tokenised trading options.

Coinbase, the US-listed crypto exchange, has also announced plans to introduce blockchain-based stock trading, though it is seeking approval from the Securities and Exchange Commission (SEC) before launching in the US.

Tokenised stocks offer several potential benefits, such as round-the-clock trading, faster settlement, smaller order sizes, and wider access. They also allow trading of shares in unlisted companies – Robinhood, for instance, has tokenised shares in OpenAI and SpaceX.

However, not everyone is convinced. Some have raised concerns about how these products are structured.

“It’s a wrapper,” wrote Anton Golub, Chief Business Officer at Dubai-based crypto exchange Freedx, in a LinkedIn post. “It’s not real equity,” he added, explaining that these tokens track real stocks in a way similar to derivatives. He also questioned the usefulness of 24-hour access, noting that liquidity often dries up after normal trading hours.