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 traditional Wall Street infrastructure with blockchain technology. This collaboration allows listed companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), alongside traditional shares, providing investors with the flexibility to hold stocks through conventional systems or digital wallets.
As part of a broader initiative to integrate tokenized shares into current market regulations while offering innovative ways to hold and transfer assets, this effort focuses on wallet-based ownership and faster settlement. Transfer agents like Computershare play a crucial role in this system, 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 is a blockchain-based firm that 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 collaborating with the New York Stock Exchange to build its tokenized equity platform.
It 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 setup, Computershare will serve as the transfer agent for tokenized shares, just as it does for traditional 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 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, as 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.