SEC opens door to tokenized U.S. stock trading. Here’s who could benefit
The Securities and Exchange Commission is accepting applications from companies wanting to list tokenized stocks following a September regulatory shift. On October 20, the SEC Division of Trading and Markets staff issued frequently asked questions regarding the Innovation Exemption for Tokenized Securities. This guidance aims to clarify the timing and content of public notices by Tokenized Securities Venues, the treatment of tokenized securities during issuer objection periods, and information availability about prospective operators. Unaffiliated third parties may tokenize shares after a venue provides written notice, leaving public companies a 30-day window to object.
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- ✓ On October 20, the US Securities and Exchange Commission Division of Trading and Markets staff issued FAQs on the Innovation Exemption for Tokenized Securities.
- ✓ The Securities and Exchange Commission is taking applications from companies wanting to list tokenized stocks.
What changed
The SEC Division of Trading and Markets issued clarifying FAQs on October 20 concerning the Innovation Exemption for Tokenized Securities.
Live updates
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SEC Issues New Guidance on Tokenized Stock Trading Exemption
The Securities and Exchange Commission is accepting applications from companies wanting to list tokenized stocks following a September regulatory shift. On October 20, the SEC Division of Trading and Markets staff issued frequently asked questions regarding the Innovation Exemption for Tokenized Securities. This guidance aims to clarify the timing and content of public notices by Tokenized Securities Venues, the treatment of tokenized securities during issuer objection periods, and information availability about prospective operators. Unaffiliated third parties may tokenize shares after a venue provides written notice, leaving public companies a 30-day window to object.
Why it matters
The regulatory framework operates on a notice-and-objection basis rather than a traditional approval process, creating a new avenue for digital asset markets. Staff across the Commission continue to address crypto-related issues through initiatives like the Crypto Task Force and proposed custody rules. Companies seeking to utilize the innovation exemption must navigate strict notice requirements and tight issuer objection deadlines.
What is confirmed
- On October 20, the US Securities and Exchange Commission Division of Trading and Markets staff issued FAQs on the Innovation Exemption for Tokenized Securities.
- The Securities and Exchange Commission is taking applications from companies wanting to list tokenized stocks.
What to watch next
- Additional SEC guidance or enforcement actions regarding Tokenized Securities Venues.
- Company responses and formal objections filed during the 30-day issuer window.
confidence 100%Sources used for this update (4)
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SEC Innovation Exemption enables tokenized U.S. stock trading
An SEC order issued September 17, 2026, now allows qualifying Tokenized Securities Venues to facilitate trading of tokenized versions of public U.S. stocks. The rule operates on a notice-and-objection basis rather than an approval process. Unaffiliated third parties may tokenize shares provided the venue gives the issuer written notice. Public companies have 30 calendar days to object in writing to prevent their shares from being tokenized. If a company fails to object within this window, the tokenized shares can be issued with no current mechanism to remove them later.
Why it matters
The SEC moved forward with these rules after the U.S. Senate failed to advance the Digital Asset Market Clarity Act. This regulatory shift coincides with efforts by Nasdaq and other major exchanges to modernize stock trading. The order grants conditional five-year exemptions from certain exchange and dealer definitions.
What is confirmed
- The SEC issued an Innovation Exemption on September 17, 2026, allowing certain platforms to trade tokenized U.S. stocks.
- Tokenized Securities Venues must provide written notice to an issuer before trading begins.
- Public companies have 30 calendar days from the receipt of notice to submit a written objection to block tokenization.
- The SEC order follows the failure of the Digital Asset Market Clarity Act to advance in the U.S. Senate.
Still unconfirmed
- OKX has filed documentation related to the SEC innovation exemption.
What to watch next
- Legal challenges to the legality of the September 17 SEC Order.
- Public company filings of formal objections to tokenization notices.
- Implementation of the five-year conditional exemptions for exchange and dealer definitions.
confidence 90%Sources used for this update (5)
- www.uschamber.com — A Time-Sensitive Update on New SEC Tokenization Rule
- www.web3aiblog.com — Tokenized US Stocks: What the SEC Exemption Permits
- weissratings.com — Wall Street Wants Tokenized Stocks. Some Companies Are Saying ...
- www.cornerstone.com — The SEC on Crypto Assets: 2026 Developments - cornerstone.com
- clsbluesky.law.columbia.edu — Shadow SEC Statement No. 17: The Tokenized Securities Venue ...
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Nasdaq Moves to Launch Tokenized Securities Trading Under SEC Rules
Nasdaq has filed a proposal with the Securities and Exchange Commission to permit tokenized securities trading, aligning with a broader regulatory shift that includes a five-year exemption for tokenized stocks and new registration categories proposed by the Commodity Futures Trading Commission. This evolving framework introduces compliance paths covering securities status, tax treatments, investor protections, and a 30-day opt-out deadline for public companies. Meanwhile, major exchanges like the New York Stock Exchange and OKX are pushing toward continuous 24-hour stock trading, while firms navigate differing token structures that range from direct shareholder rights to price-tracking instruments.
Why it matters
The regulatory sandbox launched on September 17, 2026, allows registered entities to use automated market makers and liquidity pools on public blockchains without full national exchange registration. This policy shift alters how traditional equities settle and creates compliance challenges for public companies regarding investor communications and risk management. Unresolved questions remain over how varying token wrappers impact tax liabilities and SIPC coverage for retail investors.
What is confirmed
- The SEC launched a five-year Innovation Exemption on September 17, 2026, creating a regulatory sandbox for Tokenized Securities Venues.
- Nasdaq has filed with the SEC to allow tokenized securities trading.
- The CFTC has proposed new registration categories for crypto markets.
Still unconfirmed
- Tokenized products vary widely, with some offering direct shareholder rights while others track price movements.
What to watch next
- SEC decisions on Nasdaq and other tokenized securities trading proposals
- Implementation of public company opt-out deadlines and risk management frameworks
confidence 90%Sources used for this update (6)
- www.briefs.co — UK lines up apprenticeships and placements to cut youth NEETs
- www.gate.com — SEC and CFTC Drive Two-Track Progress, Boosting New Rules: A ...
- www.goodwinlaw.com — Tokenized Trading Is Coming to Public Equities: Are You ...
- www.timesofblockchain.com — Nasdaq Pursuits Tokenized Securities Trading In SEC Proposal
- fedlaws.org — Tokenization of Stocks: Securities Status, Taxes, and SIPC ...
- finance.yahoo.com — Why OKX And NYSE Are Going All-In on 24/7 Stock Trading
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SEC Opens Five-Year Regulatory Sandbox for Tokenized U.S. Stocks
The U.S. Securities and Exchange Commission launched an Innovation Exemption on September 17, 2026, creating a five-year regulatory sandbox for Tokenized Securities Venues. This temporary test lane allows registered broker-dealers and alternative trading systems to trade tokenized U.S.-listed stocks on public blockchains using automated market makers and liquidity pools without registering as national securities exchanges. While firms like Securitize are rolling out fully backed tokens for major companies such as Apple and NVIDIA, industry analysts note that token structures vary widely, with some products offering direct shareholder rights while others merely track price movements.
Why it matters
The regulatory shift bridges traditional equities with blockchain infrastructure, opening pathways for round-the-clock digital trading. However, market participants face complex legal distinctions regarding whether a digital token confers actual ownership, custody rights, or derivative price exposure. The five-year sandbox framework sets strict conditions for venues to verify that eligible tokenized equities match traditional shareholder privileges.
What is confirmed
- On September 17, 2026, the SEC published an Innovation Exemption creating a five-year regulatory sandbox for Tokenized Securities Venues.
- The SEC order permits registered broker-dealers and alternative trading systems to use automated market makers and liquidity pools on public blockchains.
- Securitize launched fully backed tokens for 12 major U.S. stocks including Apple, NVIDIA, and Tesla with voting rights and dividends.
- Tokenized stocks reached $3.17 billion onchain globally, representing a 395 percent year-over-year increase.
Still unconfirmed
- Securitize plans to expand its tokenized mega-cap stock offerings to the NYSE and OKXICE digital venues.
What to watch next
- Regulatory decisions regarding OKXICE's tokenized stock trading venue bid
- Adoption rates of tokenized stock usage as decentralized finance collateral
confidence 90%Sources used for this update (23)
- www.investing.com — Investing.com - Stock Market Quotes & Financial News
- support.microsoft.com — October 14, 2025—KB5066791 (OS Builds 19044.6456 and 19045.6456...
- www.redstone.finance — Tokenized Stocks 2026: Stats, Trends and DeFi Gap | RedStone
- www.coindesk.com — Securitize (SECZ) launches tokenized U.S. stocks on Solana, plans NYSE and OKXICE trading
- www.techflowpost.com — Behind the Stock Tokenization Boom: Who’s Making Money, and Who’s Doing the Heavy Lifting for Others?
- coinpaprika.com — Who Can Legally Buy Tokenized Stocks? Reg S, MiFID II and the US Question
- support.microsoft.com — SEC function | Microsoft Support
- support.microsoft.com — Excel functions (by category) | Microsoft Support
- support.microsoft.com — Excel functions (alphabetical) | Microsoft Support
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- cryptobriefing.com — The SEC opens the door to tokenized stock trading. What ...
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SEC's tokenized stock trading exemption draws interest
The US Securities and Exchange Commission's Innovation Exemption allows certain automated market makers and liquidity pools to trade tokenized public company stocks on Tokenized Securities Venues using blockchain technology. This five-year test lane, which began on September 17, 2026, enables 24-hour trading of physically backed equities on public blockchains, but current access remains limited for most individual investors.
Why it matters
The policy shift could pave the way for wider adoption of tokenized securities in the US market. The exemption is a test lane for integrating tokenized equities, with several companies already exploring this space. The development of tokenized stock trading has the potential to increase efficiency and accessibility in the traditional stock market.
What is confirmed
- The SEC's Innovation Exemption allows permissioned trading of tokenized National Market System stocks.
- OKX and NYSE owner ICE plan a 24/7 blockchain platform for tokenized stocks like Nvidia, Tesla, and Apple using stablecoins.
- Securitize is bringing shares of Apple, Nvidia, Tesla and other major US companies to the Solana blockchain.
- The exemption provides a five-year test lane for integrating tokenized equities into the US market.
Still unconfirmed
- OKXICE's move comes three months after former New York Gov. Andrew Cuomo became its cochair.
What to watch next
- SEC's decision on expanding access to individual investors
- OKX and Securitize's progress in launching tokenized stock trading platforms
- NYSE's potential involvement in tokenized stock trading
confidence 90%Sources used for this update (8)
- www.bankless.com — Why the Near $NRR ETF is Different | Hunter Horsley and Sal Ternullo | Bankless
- coincentral.com — OKX and NYSE Owner ICE Plan 24/7 Blockchain Market for Tokenized Stocks
- cryptonews.net — Securitize brings Apple, Nvidia and Tesla to Solana, with NYSE trading in the works
- themonitor.gibsondunn.com — SEC Opens Up Five-Year Sandbox for Tokenized Trading of NMS ...
- www.davispolk.com — SEC’s innovation exemption opens a path for tokenized stock ...
- fortune.com — NYSE owner and crypto exchange OKX seek SEC clearance for ...
- finance.yahoo.com — OKX Rushes Into Tokenized US Stocks: Will First-Mover Status ...
- clsbluesky.law.columbia.edu — Cahill Discusses SEC’s “Innovation Exemption” for Tokenized ...
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SEC Launches Five-Year Innovation Exemption for Tokenized Stock Trading
The U.S. Securities and Exchange Commission issued an exemptive order on September 17, 2026, creating a temporary framework for trading tokenized National Market System securities. This Innovation Exemption allows certain automated market makers and liquidity pools to trade tokenized public company stocks on Tokenized Securities Venues using blockchain technology. The policy provides a five-year test lane for integrating tokenized equities into the U.S. market, though current access remains limited for most individual investors. The shift enables 24-hour trading of physically backed equities on public blockchains.
Why it matters
This regulatory move follows the failure of the CLARITY Act in the Senate on September 15. It bridges traditional equity markets with decentralized finance by allowing compliant 1-to-1 backed assets to trade via liquidity pools. The framework specifically targets the integration of NMS stocks into distributed ledger venues.
What is confirmed
- The SEC issued an exemptive order on September 17, 2026, to allow the trading of tokenized National Market System securities.
- The Innovation Exemption establishes a five-year temporary framework for blockchain-based stock trading.
- Tokenized securities may be traded through Tokenized Securities Venues by certain automated market makers and liquidity pools.
- The policy allows for the trading of 1-to-1 physically backed United States equities 24 hours a day on public blockchains.
Still unconfirmed
- Bitget and Reality Protocol are facilitating round-the-clock trading of tokenized Amazon shares using USDT.
- The policy directly benefits platforms including Coinbase, Uniswap, Solana, and Avalanche.
What to watch next
- Expansion of eligible NMS securities beyond the initial test group.
- SEC updates on investor access requirements for Tokenized Securities Venues.
- Performance data from the five-year test lane regarding market stability.
confidence 95%Sources used for this update (14)
- www.morganlewis.com — SEC Grants Temporary ‘Innovation Exemption’ for Trading ...
- www.aoshearman.com — SEC issues “Innovation Exemption” to facilitate trading of ...
- www.fool.com — The SEC Just Granted a Temporary Innovation Exemption For ...
- plisio.net — What Is Crypto Custody? Beginner Guide
- www.sec.gov — SEC.gov | Home
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- www.secsports.com — Football - Southeastern Conference
- en.wikipedia.org — Southeastern Conference - Wikipedia
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- www.coindesk.com — Crypto for Advisors: The CLARITY Act failed, but the rules came anyway
- play.google.com — Facebook - Apps on Google Play
- clsbluesky.law.columbia.edu — Skadden Discusses New SEC Framework for Trading Tokenized ...
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SEC Approves Five-Year On-Chain Tokenized Stock Trading
The Securities and Exchange Commission has introduced a five-year Innovation Exemption policy permitting compliant, 1-to-1 physically backed United States equities to trade 24 hours a day on public blockchains and automated market makers. This regulatory shift bridges traditional equities with crypto assets, directly benefiting platforms like Coinbase, Uniswap, and public blockchain networks such as Solana and Avalanche. Meanwhile, Bitget and Reality Protocol are facilitating the round-the-clock trading of tokenized assets like Amazon shares using USDT under the new framework.
Why it matters
The September 2026 regulatory order, designated Exchange Act Release No. 34-106402 and press release 2026-90, removes long-standing barriers preventing U.S. listed stocks from operating on decentralized infrastructure. Traditional stock issuers retain veto rights over third-party tokenization attempts of their underlying shares. Investors must still navigate potential pitfalls including liquidity fragmentation and the eventual expiration of the five-year sandbox.
What is confirmed
- The SEC's five-year Innovation Exemption policy allows compliant, 1:1 physically backed U.S. equities to trade 24/7 on public blockchains and AMMs.
- Reality Protocol issues tokenized Amazon shares tradable 24/7 with USDT, such as the rAMZN token priced at $246.95 on Bitget.
- The regulatory shift directly benefits native exchanges like Coinbase, decentralized exchanges like Uniswap, and public blockchain infrastructure including Solana and Avalanche.
- The order was issued on Sept. 17, 2026, as Exchange Act Release No. 34-106402 and announced via press release 2026-90.
Still unconfirmed
- On October 1, 2026, the bankrupt US Inc. Corporation Government will dissolve, and a Global Military Alliance will take control worldwide until new elections are held under a gold-backed US Note.
What to watch next
- Implementation of listed company veto rights regarding third-party stock tokenization
- Liquidity performance and development within permissioned blockchain pools
- Adoption rates across decentralized exchanges and RWA custody protocols before the five-year sandbox expires
confidence 100%Sources used for this update (6)
- www.bitget.com — Amazon Price
- blockchain.news — SEC Opens Door to Tokenized Stocks; Solana (SOL) Leads the Way
- www.tradingkey.com — SEC Approves On-Chain Trading of Tokenized US Stocks: Which ...
- www.alphapilot.tech — SEC Innovation Exemption Opens Five-Year Lane for US ...
- www.mcdermottlaw.com — SEC tests new framework for on-chain trading of tokenized stocks
- beforeitsnews.com — Byington Bombshell Report: On Thurs. US Inc. Dissolves, US of America Republic Begins Under Global Curren....
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SEC Innovation Order Permits Stock Tokenization Amid Market Shifts
U.S. regulators have shifted stance to permit stock tokenization using crypto frameworks, enabling round-the-clock digital trading. Under the SEC innovation order, issuers hold the right to object when third parties attempt to tokenize underlying national market system stocks. Meanwhile, platforms are rolling out digital representations of equities, such as Reality Protocol issuing tokenized shares tradable around the clock with USDT. This transition addresses growing demand for onchain assets, pushing traditional exchanges and crypto platforms to integrate tokenized equities and market data.
Why it matters
The recent regulatory shift aligns with broader industry momentum toward continuous market operations. Traditional entities like the New York Stock Exchange are forging agreements with cryptocurrency platforms to provide digital equities and market data, meeting rising consumer demand for onchain trading capabilities.
What is confirmed
- Issuers can object to third-parties tokenizing underlying NMS stocks.
Still unconfirmed
- The United States of America Republic is scheduled to begin on October 1, 2026, under a gold-backed US Note following the bankruptcy of US Inc.
- Congressional officers have been arrested and charged with treason and crimes against children as part of a global military sting operation.
What to watch next
- Further issuer objections or approvals regarding third-party stock tokenization under the SEC innovation order
- Additional platform integrations for 24/7 tokenized equity trading using USDT and other digital assets
confidence 80%Sources used for this update (7)
- www.bitget.com — Lumentum Price
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- www.bankless.com — FOMO, Meme Stocks and Robinhood Chain | Andy8052 & Eric Conner | Bankless
- beforeitsnews.com — Byington Bombshell Report: Bankrupt US Inc. Dissolves, United States of America Republic Begins on Oct. 1....
- www.tradersmagazine.com — AMC CEO Praises SEC Innovation Order After Robinhood Spat - Traders Magazine
- www.bankless.com — ROLLUP: The Bull Market is On? | Zcash & NEAR | Kalshi Wash Trading | BlackRock Goes Onchain | Bankless
- 247wallst.com — Why Is Solana Rising Today? It's Leading the Major Cryptos This Month with a 20% Rally to $115 - 24/7 Wal....
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NYSE and Blockchain.com partner for tokenized U.S. stock trading
The New York Stock Exchange and Blockchain.com signed an agreement to provide tokenized equities and market data to cryptocurrency users. This partnership follows a regulatory shift by the SEC that allows U.S. equities to be traded using crypto-style frameworks. The move targets growing demand for onchain stocks and aligns with a broader industry transition toward 24/7 market operations. While the SEC provided a five-year exemption for certain firms, participants must still meet specific compliance requirements to operate within the new digital equity space.
Why it matters
Traditional finance is merging with digital assets as the SEC enables tokenized stock trading. Analysts previously identified Coinbase, Robinhood, and Circle as key beneficiaries of this shift. This integration allows traditional equities to move onto blockchain networks.
What is confirmed
- The New York Stock Exchange and Blockchain.com signed an agreement regarding tokenized equities and market data.
- The SEC established a tokenized stock framework allowing for crypto-style trading of U.S. equities.
What to watch next
- Confirmation of specific compliance hurdles cleared by NYSE and Blockchain.com
- Revenue reports from the five-year SEC exemption period
confidence 100%Sources used for this update (2)
- cointelegraph.com — NYSE, Blockchain.com in tie-up to bring tokenized US stocks to crypto users
- finance.yahoo.com — NYSE Teams Up With Blockchain.com to Offer Tokenized Stocks
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Analysts name Coinbase, Robinhood and Circle as SEC tokenization winners
Analysts from Goldman Sachs and Citizens identify Coinbase, Robinhood, and Circle as the primary beneficiaries of the SEC's new tokenized stock framework. This regulatory shift allows for crypto-style trading of U.S. equities and moves the market toward 24/7 operations. While digital exchanges have already seen price increases, the specific firms named are positioned to capture new revenue streams through the five-year exemption. These companies must still clear compliance hurdles to implement the framework and compete in the emerging digital equity space.
Why it matters
The SEC established this framework after the Clarity Act failed in Congress. It creates a legal pathway for traditional stocks to be traded as tokens. This transition aims to modernize equity markets by integrating blockchain settlement.
Still unconfirmed
- Robinhood will launch tokenized stock trading in the U.S. before the end of 2027.
- Coinbase, Robinhood, and Circle are potential winners from the SEC framework and settlement.
What to watch next
- Official launch dates for tokenized trading by named platforms
- SEC guidance on specific compliance hurdles for digital exchanges
confidence 80%Sources used for this update (3)
- blockonomi.com — SEC’s Tokenized Stock Framework Opens Revenue Doors for Coinbase, Robinhood, and Circle
- finance.yahoo.com — Why Is Solana Rising Today? It’s Leading the Major Cryptos This Month with a 20% Rally to $115
- finance.yahoo.com — Prediction: Robinhood Will Launch Tokenized Stock Trading in the U.S. Before the End of 2027
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SEC Opens Path to Tokenized U.S. Stock Trading
The U.S. Securities and Exchange Commission has rolled out a five-year exemption for tokenized stock trading, creating a legal framework that paves the way for crypto-style trading of traditional U.S. equities and brings the market closer to around-the-clock trading. Digital exchanges climbed following the regulatory shift, which follows the failure of the Clarity Act in Congress. Platforms such as Robinhood gain a potential U.S. tokenized-stock pathway under the exemption, although compliance hurdles and rising competition remain.
Why it matters
The federal regulatory mechanism determines whether tokenized equities can scale legally in the U.S. market. Tokenization is set to change stock trading as traditional finance moves onchain. The move follows S&P Global announcing its acquisition of OpenZeppelin.
What is confirmed
- The SEC issued an Innovation Exemption to facilitate the trading of tokenized NMS stock and a request for comment.
- The U.S. securities regulator rolled out a five-year exemption for tokenized stock trading.
- Digital exchanges moved upward in Friday morning trading after the regulatory changes.
- Robinhood gains a potential U.S. tokenized-stock pathway under the SEC exemption.
Still unconfirmed
- Compliance hurdles and rising competition temper the near-term impact for platforms like Robinhood.
What to watch next
- Finalization of the SEC exemptive framework for tokenized securities
- Responses from issuers and market participants to the SEC request for comment
confidence 100%Sources used for this update (10)
- CNBC — SEC clears path for tokenized stocks, bringing the market closer to 24/7 trading
- Reuters — US securities regulator rolls out five-year exemption for tokenized stock trading
- Axios — SEC opens door for crypto-style trading of U.S. stocks
- SEC.gov — SEC Issues “Innovation Exemption” to Facilitate the Trading of Tokenized NMS Stock and Request for Comment
- ft.com — US regulator opens markets to tokenised stock trading
- CoinDesk — SEC opens door to tokenized U.S. stock trading. Here’s who could benefit
- decrypt.co — Morning Minute: SEC Approves ‘Innovation Exemption’ Moving Tokenized Stocks Forward
- finance.yahoo.com — SEC Opens U.S. Door to Tokenized Stocks: Is Robinhood a Buy Now?
- finance.yahoo.com — SEC Opens the Gate for Tokenized Stocks. The Catch: Issuers Hold the Keys.
- www.cnbc.com — Tokenization is set to change stock trading. These stocks could get a boost
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