In a significant move, 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, 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 larger effort to integrate tokenized shares into current market regulations while introducing new methods for asset ownership and transfer, including wallet-based ownership and expedited settlement. Transfer agents, such as Computershare, play a crucial 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 issuing and managing real-world assets, such as equities and funds, in tokenized form on blockchain networks.
The company has made notable strides, including the issuance of BlackRock's $2.5 billion tokenized money market fund and its involvement in the development of the New York Stock Exchange's 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, while Securitize provides the underlying technology. The blockchain component remains largely in the background, with the tokens 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.' The reach of Computershare, which serves over 25,000 companies and acts as a transfer agent for approximately 58% of the S&P 500, could give this effort the necessary 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.'