In a significant move, Securitize, backed by BlackRock, and Computershare are set to bring a substantial portion of the $70 trillion US stock market onto blockchain technology through tokenized equities, thereby bridging the gap between traditional Wall Street infrastructure and blockchain networks. 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 stocks either through traditional systems or digitally, using a wallet.
The initiative is part of a larger effort to ensure tokenized shares operate seamlessly within current market regulations while providing innovative methods for holding and transferring assets, including wallet-based ownership and faster settlement processes. 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 circumvent a common workaround in the crypto space, where tokens often represent claims on shares rather than the actual shares themselves. As a blockchain-based firm, Securitize specializes in enabling real-world assets, such as equities and funds, to be issued, traded, and managed in tokenized form on blockchain networks.
The firm is notably recognized for issuing a $2.5 billion tokenized money market fund for BlackRock and for collaborating with the New York Stock Exchange to develop its tokenized equity platform. Securitize also plans to go public later this year through a SPAC deal with Cantor Equity Partners II (CEPT). The Convergence of Blockchain and Transfer Agents Under this arrangement, Computershare will serve as the transfer agent for tokenized shares, similar to its role for traditional shares. This includes managing records and processing events such as dividends or stock splits across both formats.
Securitize provides the underlying technology, with the blockchain component largely operating in the background. 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," stated Securitize CEO Carlos Domingo.
"They provide US issuers with the ability to create direct equity ownership in token form." The reach of Computershare could potentially 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 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.