Quick Breakdown
- First-of-its-kind move: SharpLink will issue its Nasdaq-listed SBET shares directly on Ethereum, with Superstate as transfer agent.
- DeFi ambitions: The firms plan to explore compliant secondary trading of tokenized equity via AMMs.
- Cautious markets: SBET shares fell 7.63% after the announcement, reflecting investor uncertainty.
SharpLink Gaming, Inc. is set to become the first public company to tokenize its Nasdaq-listed stock directly on Ethereum, appointing Superstate as its digital transfer agent. The move marks a major step toward integrating blockchain technology into regulated capital markets.
Superstate’s role in onchain issuance
The Minneapolis-based gaming company announced on September 25 that it will leverage Superstate’s Opening Bell platform to oversee the compliant issuance of its SBET common stock. Superstate, chaired by Ethereum co-founder Joseph Lubin, will manage the digital transfer agent role, ensuring the onchain issuance aligns with U.S. securities regulations.
Beyond tokenization: trading on defi protocols
SharpLink and Superstate plan to extend the initiative beyond issuance, exploring compliant secondary trading of tokenized equity on decentralized finance (DeFi) platforms. This would potentially allow SBET shares to be traded via automated market makers (AMMs), enabling global investor access, real-time settlement, and transparent price discovery — features not typically available in traditional equity markets.
The effort coincides with the SEC’s Project Crypto, an experimental framework designed to accommodate blockchain-based securities and test new market structures.
Strategic commitment to Ethereum
The partnership also highlights SharpLink’s broader commitment to Ethereum. Under Lubin’s leadership, the company has pursued aggressive strategies around ETH, including launching a dedicated treasury initiative earlier this year.
SharpLink significantly increased its Ethereum holdings to an estimated $1.65 billion. Notably, one of the largest single transactions involved the acquisition of 6,914 ETH, valued at $23.56 million at current prices. SharpLink executed multiple purchases amounting to $54 million in ETH, raising its total Ether balance to approximately 480,031 coins.
Market reaction
Despite the breakthrough, investors reacted cautiously. SharpLink’s SBET shares slipped 7.63% on Thursday, closing at $16.26 from a prior $17.58. The drop followed broader weakness in crypto-related equities and reflected the experimental nature of the company’s strategy.
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