In a significant move to bring the $70 trillion US stock market onto blockchain, Securitize, backed by BlackRock, and Computershare have partnered to introduce tokenized equities, bridging traditional Wall Street infrastructure with blockchain technology. This collaboration allows listed companies to offer tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to traditional shares, providing investors with the flexibility to hold stock through either traditional systems or digital wallets. The agreement is part of a broader effort to integrate tokenized shares into current market rules, offering innovative ways to hold and transfer assets, including wallet-based ownership and expedited settlement. As a key player in this system, transfer agents like Computershare maintain shareholder records and handle 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 real-world assets like equities and funds to be issued, traded, and managed in tokenized form on blockchain networks. The company has notably issued a $2.5 billion tokenized money market fund for BlackRock and assisted the New York Stock Exchange in building its tokenized equity platform.
It also plans to go public later this year through a SPAC deal with Cantor Equity Partners II (CEPT). Under this setup, Computershare will serve as the transfer agent for tokenized shares, managing records and processing events like dividends or stock splits across both formats.
Securitize provides the underlying technology, with the blockchain component operating largely in the background. The tokens are designed to represent direct ownership, rather than derivatives layered on top of existing stock.
According to Securitize CEO Carlos Domingo, 'ISTs do not rely on derivative tokens that sit on top of underlying shares. They provide US issuers with the ability to create direct equity ownership in token form.' With Computershare's extensive reach, serving over 25,000 companies and acting as a transfer agent for approximately 58% of the S&P 500, this effort has the potential to achieve significant scale. The structure also ensures that issuers 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.'