SharpLink Paves the Way for TradFi and DeFi Integration Through Ethereum-Based Shares

SharpLink Gaming, Inc. (Nasdaq: SBET) has made history as the first publicly listed company to natively tokenize its SEC-registered common shares on the

blockchain. This was accomplished in collaboration with fintech company Superstate, utilizing the regulated Opening Bell platform. Announced on September 25, 2025, the initiative is intended to showcase how blockchain technology can drive shareholder benefits, boost market efficiency, and bring innovation to capital markets. The tokenized shares retain the same legal standing as conventional book-entry equity, but add new features such as digital wallet self-custody, compatibility with decentralized finance (DeFi) solutions, and the possibility of compliant trading on automated market makers (AMMs) SEC-Registered Equity Comes to Ethereum: Superstate and SharpLink Partner to Launch Tokenized SBET on Ethereum [ 1 ]. This project supports the U.S. Securities and Exchange Commission’s (SEC) Project Crypto, which aims to update securities regulations for digital assets and on-chain trading SEC-Registered Equity Comes to Ethereum: Superstate and SharpLink Partner to Launch Tokenized SBET on Ethereum [ 1 ].

SharpLink’s approach to tokenization is backed by its robust Ethereum (ETH) treasury, which has accumulated more than 838,000 ETH since June 2025 and earned 3,815 ETH in staking rewards by late September. After naming Ethereum co-founder Joseph Lubin as Chairman in 2025, the company has become one of the largest corporate ETH holders globally. Co-CEO Joseph Chalom stated that this move is more than a technical achievement—it signals the direction of global capital markets, highlighting SharpLink’s commitment to building a reliable digital asset treasury and advancing Ethereum’s adoption. Lubin remarked that the partnership “opens the floodgates” for merging traditional finance (TradFi) with modular DeFi on Ethereum SEC-Registered Equity Comes to Ethereum: Superstate and SharpLink Partner to Launch Tokenized SBET on Ethereum [ 1 ]. Superstate CEO Robert Leshner described the partnership as a “landmark” for a company aligned with Ethereum, emphasizing its potential to transform market structure SEC-Registered Equity Comes to Ethereum: Superstate and SharpLink Partner to Launch Tokenized SBET on Ethereum [ 1 ].

The tokenized shares, distributed through Superstate’s Opening Bell platform, are structured to allow secondary trading on AMMs while staying within regulatory boundaries. This model could improve liquidity and transparency for investors, as tokenized stocks may be traded around the clock on decentralized exchanges and settle in seconds instead of days. The SEC has made it clear that tokenized securities must still comply with federal securities laws, including disclosure and regulatory requirements Enchanting, but Not Magical: A Statement on the Tokenization of Securities [ 3 ]. SharpLink’s project reflects a larger industry movement, with Nasdaq recently suggesting rule changes to support tokenized equity trading on its platform, provided tokens meet standards like fungibility and shared CUSIP numbers Nasdaq Proposes Rule Changes to Tokenize Equity Securities and Exchange-Traded Products [ 4 ]. These trends point to increasing institutional interest in blockchain-based capital markets, though issues such as custody, interoperability, and regulatory certainty remain.

SharpLink’s ETH treasury strategy has already delivered substantial gains, with the company earning $3.51 billion in ETH value by September 2025. The company’s aggressive pursuit of staking rewards—509 ETH in just one week—demonstrates its dedication to utilizing Ethereum’s financial ecosystem. While tokenizing SBET shares introduces risks like price swings and compliance challenges, SharpLink has implemented safeguards, including historical cost accounting for ETH and impairment charges linked to market price changes. The press release’s forward-looking statements highlight possible benefits, such as broader access for global investors and the integration of tokenized stocks into DeFi, while also acknowledging uncertainties like regulatory shifts and market volatility SEC-Registered Equity Comes to Ethereum: Superstate and SharpLink Partner to Launch Tokenized SBET on Ethereum [ 1 ].

The project has received mixed feedback in the crypto space, with Ethereum’s price falling below $4,000 amid overall market turbulence. Nevertheless,

remains confident about the long-term impact of tokenization on capital raising and investor participation. Experts suggest that tokenized stocks could make investing more accessible by allowing fractional ownership and faster settlement, though widespread adoption depends on overcoming technical and regulatory obstacles. As the first public company to issue equity directly on Ethereum, SharpLink’s initiative could pave the way for the convergence of traditional and decentralized finance, potentially transforming global capital markets.