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 technology through tokenized equities, bridging traditional Wall Street infrastructure with blockchain capabilities. This agreement allows publicly listed companies to introduce tokenized equity, known as Issuer-Sponsored Tokens (ISTs), alongside their existing shares, providing investors with the flexibility to hold stocks either through traditional systems or in digital wallets.
The initiative is part of a broader effort to integrate tokenized shares into current market regulations while offering innovative ways to hold and transfer assets, including wallet-based ownership and accelerated settlement. Transfer agents, such as Computershare, play a central 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 specializing in issuing, trading, and managing real-world assets, such as equities and funds, in tokenized form on blockchain networks.
Notably, Securitize has issued a $2.5 billion tokenized money market fund for BlackRock and has collaborated with the New York Stock Exchange to build its tokenized equity platform, with plans to go public later this year through a SPAC deal with Cantor Equity Partners II. The integration of blockchain technology with transfer agents marks a significant development. Under this setup, Computershare will serve as the transfer agent for tokenized shares, managing records and processing events like dividends or stock splits across both traditional and tokenized formats.
Securitize provides the underlying technology, with the blockchain component operating largely 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 reach of Computershare, serving over 25,000 companies and acting as a transfer agent for approximately 58% of the S&P 500, could give this effort the necessary scale. This 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, emphasized, "Our focus has been to empower US-listed companies to issue tokenized equity while retaining control."