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. The agreement allows listed companies to offer tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to their existing shares, giving investors the flexibility to hold stocks through traditional systems or digital wallets. This effort is part of a broader initiative to make tokenized shares compatible with current market regulations while providing new methods for holding and transferring assets, including wallet-based ownership and faster settlement.
As a key player in this system, transfer agents like Computershare maintain shareholder records and handle 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, such as equities and funds, in tokenized form on blockchain networks.
The firm has made headlines for issuing a $2.5 billion tokenized money market fund for BlackRock and assisting the New York Stock Exchange in building 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 act as the transfer agent for tokenized shares, managing records and processing events like dividends or stock splits across both formats.
Securitize provides the underlying technology, with the blockchain component largely operating 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 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.'