In a move to bring a portion of the $70 trillion US stock market onto blockchain through tokenized equities, Securitize, backed by BlackRock, and Computershare have joined forces, pushing traditional Wall Street infrastructure closer to blockchain technology. This agreement allows publicly listed companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), in addition to their existing shares, providing investors with the option to hold stock through traditional systems or a digital wallet. This effort is part of a broader initiative to make tokenized shares compatible with current market regulations while offering new 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 is a blockchain-based firm that enables real-world assets, such as equities and funds, to be issued, traded, and managed in tokenized form on blockchain networks. The firm is known for issuing a $2.5 billion tokenized money market fund for BlackRock and for helping the New York Stock Exchange build its tokenized equity platform. It also plans to go public later this year via a SPAC deal with Cantor Equity Partners II (CEPT). The convergence of blockchain and transfer agents In this setup, Computershare will act as the transfer agent for tokenized shares, just as it does for traditional ones, managing records and processing events like dividends or stock splits across both formats.
Securitize provides the underlying technology, but the blockchain component remains largely in the background. The tokens are designed to represent direct ownership, not derivatives layered on top of existing stock. "ISTs do not rely on derivative tokens that sit on top of underlying shares," said Securitize CEO Carlos Domingo. "They provide US issuers with the ability to create direct equity ownership in token form." Computershare's reach could give this effort the scale it needs.
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 key requirement for publicly traded companies. "Our focus has been to empower US-listed companies to issue tokenized equity while retaining control," said Ann Bowering, CEO of issuer services at Computershare North America.