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 via 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), alongside existing shares, providing investors with the flexibility to hold stock through traditional systems or digital wallets. This initiative is part of a broader effort to integrate tokenized shares into current market rules while introducing new ways to hold and transfer assets, including wallet-based ownership and 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 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 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's reach, this effort could achieve significant scale, as the firm serves over 25,000 companies and acts as a transfer agent for about 58% of the S&P 500. The structure also allows issuers to maintain control of 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.'