In a move to bring a significant portion of the $70 trillion US stock market onto blockchain, Securitize, backed by BlackRock, and Computershare are introducing tokenized equities, thereby bridging traditional Wall Street infrastructure with blockchain technology. This agreement allows publicly traded companies to offer tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to traditional shares, providing investors with the flexibility to hold stocks through conventional systems or digital wallets.
As part of a broader effort to integrate tokenized shares into existing market regulations while introducing new asset management and transfer methods, this partnership leverages transfer agents like Computershare, which play a crucial role in 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 gained recognition for issuing a $2.5 billion tokenized money market fund for BlackRock and collaborating with the New York Stock Exchange to develop its tokenized equity platform. Securitize 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, similar to its role for traditional shares, managing records and processing events like dividends and stock splits across both formats.
Securitize provides 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 stocks. 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 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 publicly traded 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.'