In a significant move, Securitize, backed by BlackRock, and Computershare are set to bring a portion of the $70 trillion US stock market onto the blockchain through tokenized equities, bridging the gap between traditional Wall Street infrastructure and blockchain technology. This agreement allows publicly traded companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to their existing shares.
This gives investors the flexibility to hold stocks through traditional systems or store them in a digital wallet. This initiative is part of a broader effort to make tokenized shares compatible with current market regulations while offering novel ways to hold and transfer assets, including wallet-based ownership and faster settlement. Transfer agents, such as Computershare, play a vital role in this system by maintaining shareholder records and handling corporate actions. By integrating at this level, the companies aim to avoid a common cryptocurrency workaround where tokens represent claims on shares rather than the shares themselves.
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 company is known for issuing a $2.5 billion tokenized money market fund for BlackRock and assisting the New York Stock Exchange in building its tokenized equity platform. Securitize also plans to go public later this year through a SPAC deal with Cantor Equity Partners II (CEPT).
The Intersection of Blockchain and Transfer Agents Under 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 the blockchain component remains largely in the background, similar to other recent efforts in this space.
The tokens are designed to represent direct ownership, rather than derivatives layered on top of existing stocks. "ISTs do not rely on derivative tokens that sit on top of underlying shares," said Securitize CEO Carlos Domingo.
"They provide US issuers with the ability to create direct equity ownership in token form." Computershare's extensive reach could give this effort the necessary scale. 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 crucial requirement for public 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.