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. The agreement allows publicly listed companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to their existing shares, providing investors with the option to hold stocks through traditional systems or digitally. This effort is part of a broader initiative to make tokenized shares compatible with current market regulations while offering new methods for holding and transferring assets, including wallet-based ownership and faster settlement. Transfer agents, such as Computershare, play 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 real-world assets like equities and funds to be issued, traded, and managed in tokenized form on blockchain networks.
The company is known for issuing a $2.5 billion tokenized money market fund for BlackRock and for helping the New York Stock Exchange build its tokenized equity platform, with plans to go public later this year via a SPAC deal. Under this setup, Computershare will act as the transfer agent for tokenized shares, managing records and processing events like dividends or stock splits across both formats, while Securitize provides the underlying technology. The tokens are designed to represent direct ownership, bypassing 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 about 58% of the S&P 500, this effort has the potential to scale significantly.
The structure also allows issuers to maintain control over their shareholder base, a crucial requirement for public companies. As Ann Bowering, CEO of issuer services at Computershare North America, stated, 'Our focus has been to empower US-listed companies to issue tokenized equity while retaining control.'