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 blockchain through tokenized equities, thereby bridging traditional Wall Street infrastructure with blockchain technology. This development 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 stocks either through traditional systems or digitally. The collaboration is part of a larger effort to integrate tokenized shares into current market regulations while introducing novel methods for asset ownership and transfer, including wallet-based ownership and expedited settlement.
Transfer agents, such as Computershare, play a pivotal role in this system by maintaining shareholder records and handling corporate actions. By integrating at this level, the companies aim to circumvent a common workaround in the crypto space where tokens merely represent claims on shares rather than the shares themselves. Securitize, a blockchain-based firm, specializes in enabling real-world assets like equities and funds to be issued, traded, and managed in tokenized form on blockchain networks.
Notably, the firm has facilitated the issuance of a $2.5 billion tokenized money market fund for BlackRock and has assisted the New York Stock Exchange in developing its tokenized equity platform. Securitize also plans to go public later this year through a SPAC deal with Cantor Equity Partners II (CEPT).
Under this arrangement, Computershare will serve as the transfer agent for tokenized shares, mirroring its role for traditional shares, which includes managing records and processing events such as 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 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 potential scale of this effort is significant, given Computershare's extensive reach, serving over 25,000 companies and acting as a transfer agent for approximately 58% of the S&P 500.
This structure also enables 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, emphasized, 'Our focus has been to empower US-listed companies to issue tokenized equity while retaining control.'