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 agreement allows publicly traded companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to their existing shares, providing investors with the flexibility to hold stocks through either traditional systems or digital wallets. This initiative is part of a broader effort to integrate tokenized shares into the current market framework while offering novel ways to hold and transfer assets, ranging from wallet-based ownership to 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, enables the issuance, trading, and management of real-world assets, including equities and funds, in tokenized form on blockchain networks. The company is renowned 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, including managing records and processing events like dividends or stock splits across both formats.
Securitize provides the underlying technology, but the blockchain component remains largely in the background, similar to other recent efforts in this space. 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," stated 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.