In a move to bring a portion of the $70 trillion US stock market onto blockchain, Securitize, backed by BlackRock, and Computershare are introducing tokenized equities, bridging traditional Wall Street infrastructure with blockchain technology. This agreement allows listed companies to offer tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to their existing shares, giving investors the flexibility to hold stocks through either traditional systems or digital wallets. The effort is part of a larger initiative to make tokenized shares compatible with current market regulations while introducing new methods for holding and transferring assets, including wallet-based ownership and faster settlement.

As a transfer agent, Computershare plays a central 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 shares themselves. Securitize, a blockchain-based firm, enables the issuance, trading, and management of real-world assets like equities and funds in tokenized form on blockchain networks.

It 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, with plans to go public later this year via a SPAC deal. Under this setup, Computershare will serve as the transfer agent for tokenized shares, managing records and processing events such as dividends or stock splits across both formats, while Securitize provides the underlying technology. The blockchain component remains largely in the background, with tokens designed to represent direct ownership rather than derivatives.

According to Securitize CEO Carlos Domingo, 'ISTs do not rely on derivative tokens layered on top of underlying shares; they provide US issuers with the ability to create direct equity ownership in token form.' With Computershare serving over 25,000 companies and acting as a transfer agent for about 58% of the S&P 500, this effort could achieve significant scale. The structure also allows issuers to maintain control over their shareholder base, a critical requirement for public companies.

As Ann Bowering, CEO of issuer services at Computershare North America, noted, 'Our focus has been to empower US-listed companies to issue tokenized equity while retaining control.'