In a significant move, Securitize, backed by BlackRock, and Computershare are set to bring a portion of the $70 trillion US stock market onto blockchain through tokenized equities, bridging the gap between traditional Wall Street infrastructure and blockchain technology. This collaboration allows publicly listed companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to their existing shares. This gives investors the flexibility to hold stock through traditional systems or store it in a digital wallet.
The initiative is part of a larger effort to make tokenized shares compatible with current market regulations while offering new methods for holding and transferring assets, including wallet-based ownership and faster settlement. Transfer agents, such as Computershare, play a crucial role in this system by maintaining shareholder records and handling corporate actions.
By integrating at this level, the companies aim to avoid a common workaround in the crypto space, where tokens represent claims on shares rather than the actual shares. As a blockchain-based firm, Securitize enables the issuance, trading, and management of real-world assets, such as equities and funds, in tokenized form on blockchain networks. The Convergence of Blockchain and Transfer Agents In this setup, Computershare will serve as the transfer agent for tokenized shares, just as it does for traditional shares. This includes managing records and processing events like dividends or stock splits across both formats.
Securitize provides the underlying technology, but similar to other recent efforts in this space, the blockchain component remains largely in the background. The tokens are designed to represent direct ownership, rather than derivatives layered on top of existing stock. "ISTs do not rely on derivative tokens that sit on top of underlying shares," said Carlos Domingo, CEO of Securitize.
"They provide US issuers with the ability to create direct equity ownership in token form." Computershare's extensive reach could give this effort the scale it needs. The firm serves over 25,000 companies and acts as a transfer agent for approximately 58% of the S&P 500.
This structure also allows issuers to maintain control over their shareholder base, a critical requirement for publicly traded companies. "Our focus has been to empower US-listed companies to issue tokenized equity while retaining control," said Ann Bowering, CEO of Issuer Services at Computershare North America.