Nano Labs and TradeUP Securities Partner to Explore Tokenized US Equities

Executive Summary

NASDAQ-listed Nano Labs, through its subsidiary Nano bit, has signed a Memorandum of Understanding with TradeUP Securities Inc. to explore the development of tokenized US equities through regulated channels. This collaboration aims to establish compliant pathways for integrating tokenization technologies into traditional financial services, focusing on the potential for expanded access and enhanced market efficiency.

The Event in Detail

The agreement outlines a strategic collaboration wherein Nano Labs will provide comprehensive Web3 technical solutions. These solutions encompass blockchain infrastructure, tokenization processes, smart contract deployment, and security mechanisms necessary for digital asset creation. In parallel, TradeUP Securities will leverage its expertise in custody, clearing, and settlement for US stocks, alongside its regulated brokerage capabilities. This division of roles is intended to support the exploration of compliant tokenization models within a regulated framework. Both entities plan to develop and pilot tokenized equity products through established pilot programs and regulatory sandboxes. A key aspect of their joint effort will be the establishment of comprehensive compliance and risk-control protocols, addressing Know Your Customer (KYC), Anti-Money Laundering (AML), fraud prevention, and transaction monitoring. Furthermore, the partnership will explore necessary licensing, registration, and other regulatory requirements pertinent to the development and commercialization of tokenized equity solutions. The initiative aims to bring US equities onto blockchain infrastructure while maintaining strict adherence to applicable laws and regulatory approvals.

Market Implications

This collaboration signals a growing institutional interest in leveraging blockchain technology for traditional financial assets, potentially paving the way for wider adoption of regulated tokenized real-world assets (RWAs). The exploration of tokenized US equities has significant implications for capital markets. Dr. Kailong Cai, CEO of Nano bit, stated that tokenization offers the potential to "expand access, enhance efficiency, and enable new use cases in capital markets, unlocking 24/7 trading, fractionalized access, cross-border liquidity, and programmable finance for global investors." This integration could foster new financial products, deepen the connection between Web3 and traditional capital markets, and reshape investor access to global equities. The focus on regulated channels underscores a commitment to market integrity and investor protection, which is crucial for broader institutional participation.

Expert Commentary

Dr. Kailong Cai, CEO of Nano bit, articulated the transformative potential of this initiative. He noted that tokenization can "expand access, enhance efficiency, and enable new use cases in capital markets, unlocking 24/7 trading, fractionalized access, cross-border liquidity, and programmable finance for global investors." Mr. Lei Huang, CEO of TradeUP Securities, emphasized his firm's dedication to regulatory compliance and investor protection. Huang stated, "As a global brokerage group with a FINRA-registered subsidiary in the U.S., we remain committed to investor protection and regulatory compliance. This collaboration with Nano Labs represents a key milestone in exploring compliant pathways for the potential integration of tokenization technologies into regulated financial services." Both executives underscore the strategic importance of building a compliant, transparent, and scalable framework that merges traditional finance with Web3 technologies.

Broader Context

The move by Nano Labs and TradeUP Securities is part of a broader trend towards the tokenization of real-world assets. Recent developments include Robinhood unveiling tokenized versions of over 200 US stocks and ETFs on Arbitrum, with plans to migrate them to their proprietary Robinhood Chain. Similarly, Kraken, through a partnership with Backed, launched tokenized US equities on Solana. The tokenized stock market, while currently valued at approximately $340 million, has experienced a 750x year-over-year growth. Investment management firms like BlackRock and VanEck have announced plans to tokenize money market funds using Ripple Lab's stablecoin (RluSD) for on-chain liquidity. Morgan Stanley has also signaled its intent to invest $100 million in Zero Hash, a crypto infrastructure provider, to build a digital asset trading platform by 2026. These initiatives collectively indicate that financial institutions view tokenization as a means to achieve greater efficiency, contract programmability, and access new liquidity pools, suggesting that on-chain settlement is becoming an economic imperative rather than a speculative trend. Nano Labs itself has previously positioned itself in the cryptocurrency space, maintaining reserves in BNB and Bitcoin, further aligning this initiative with its strategic direction as a Web3.0 infrastructure provider.