In a significant move to bridge traditional Wall Street infrastructure with blockchain technology, Securitize, backed by BlackRock, and Computershare are set to bring a substantial portion of the $70 trillion US stock market onto the blockchain through tokenized equities. This development allows listed companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), alongside traditional shares, providing investors with the flexibility to hold stocks either through conventional systems or a digital wallet. The agreement is part of a broader initiative to make tokenized shares compatible with current market regulations while introducing novel ways to hold and transfer assets, including wallet-based ownership and expedited settlement.
Transfer agents, such as Computershare, play a pivotal 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 shares themselves. Securitize, a blockchain-based firm, specializes in enabling real-world assets like equities and funds to be issued, traded, and managed in tokenized form on blockchain networks.
Notably, Securitize has issued a $2.5 billion tokenized money market fund for BlackRock and has collaborated with the New York Stock Exchange on its tokenized equity platform. The company plans to go public later this year through a SPAC deal with Cantor Equity Partners II. Under this setup, Computershare will serve as the transfer agent for tokenized shares, mirroring its role for traditional shares, including 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 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.'