SharpLink Emerges as the First Public Company to Directly Distribute Equity on Ethereum, Connecting Traditional Finance with DeFi
- SharpLink Gaming becomes first public company to natively issue SEC-registered equity on Ethereum via Superstate’s Opening Bell platform. - Tokenized shares aim to bridge TradFi and DeFi by enabling AMM trading while maintaining legal equivalence to traditional equity. - Initiative aligns with SEC’s Project Crypto but faces mixed market reactions, including an 8% SBET stock drop post-announcement. - Project tests compliance-driven DeFi integration, with potential to redefine liquidity and market structur
SharpLink Gaming, Inc. (Nasdaq: SBET), a leading supporter of
This partnership represents the first instance of a publicly traded company issuing equity directly on Ethereum.
SharpLink’s co-CEO Joseph Chalom highlighted the importance of this step, noting it demonstrates the company’s confidence in Ethereum’s potential to shape the future of capital markets SharpLink & Superstate Bring SEC-Registered Equity to Ethereum [ 1 ]. Chairman Joseph Lubin, who also co-founded Ethereum, described the initiative as progress toward connecting traditional finance (TradFi) with modular DeFi on Ethereum SharpLink & Superstate Bring SEC-Registered Equity to Ethereum [ 1 ]. Since launching its ETH treasury strategy in June 2025, the company has earned more than 3,815 ETH in staking rewards, further demonstrating its dedication to Ethereum-based financial systems SharpLink & Superstate Bring SEC-Registered Equity to Ethereum [ 1 ].
The market’s response to the news has been mixed. Although the move highlights SharpLink’s commitment to Ethereum, its stock (SBET) dropped by about 8% in early trading after the announcement Joe Lubin’s SharpLink to Tokenize SBET Shares on Ethereum via … [ 2 ]. This decline contrasts with the surge in SharpLink’s stock price in June 2025, when shares more than doubled following the ETH treasury announcement SharpLink to tokenize SBET stock on Ethereum with Superstate [ 3 ]. The company’s tokenization plans also face headwinds from broader market trends, such as Ethereum’s recent dip below $4,000, which led to major liquidations among large holders Ether Whale Books $45M Loss as ETH Falls Below $4K [ 6 ].
The possibility of trading tokenized equities on AMMs could set a new standard for regulatory-compliant innovation in DeFi. Robert Leshner, CEO of Superstate, called the partnership a significant achievement, emphasizing SharpLink’s pioneering role in advancing Ethereum-based capital markets SharpLink & Superstate Bring SEC-Registered Equity to Ethereum [ 1 ]. If the project succeeds, it could encourage other public firms to tokenize assets on blockchain, increasing liquidity and reducing dependence on traditional financial intermediaries Joe Lubin’s SharpLink to Tokenize SBET Shares on Ethereum via … [ 2 ].
SharpLink’s work with Superstate is part of a larger movement of corporations adopting blockchain for asset management. For example, Galaxy Digital recently issued tokenized shares on
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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