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. The agreement allows listed companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to their existing shares, providing investors with the flexibility to hold stock through either traditional systems or a digital wallet.
This initiative is part of a broader effort to make tokenized shares compatible with current market regulations while offering innovative ways to hold and transfer assets, from wallet-based ownership to faster 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 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 BlackRock's $2.5 billion tokenized money market fund 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 setup, Computershare will serve as the transfer agent for tokenized shares, just as it does for traditional shares, managing records and processing events like dividends or 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 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 allows issuers to maintain control over their shareholder base, a critical 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.'