In a significant move, BlackRock-backed Securitize and Computershare are set to bring a substantial portion of the $70 trillion US stock market onto the blockchain through tokenized equities, bridging the gap between traditional Wall Street infrastructure and 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 either conventional systems or digital wallets.
The initiative is part of a broader effort to integrate tokenized shares into existing market rules while introducing innovative 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 avoid a common workaround in the crypto space, where tokens represent claims on shares rather than the shares themselves. Securitize, a blockchain-based firm, 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 has made headlines for issuing a $2.5 billion tokenized money market fund for asset management giant BlackRock and for 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). Under this new 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 will provide the underlying technology, with the blockchain component operating primarily 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.'