Securitize, supported by BlackRock, in collaboration with Computershare, is integrating the $70 trillion U.S. stock market into blockchain infrastructure through tokenized equities. This initiative brings traditional Wall Street closer to blockchain technology.
Under this agreement, listed companies can issue Issuer-Sponsored Tokens (ISTs) alongside conventional shares, allowing investors to choose between holding stocks via traditional systems or digital wallets.
This effort is part of a larger strategy to adapt tokenized shares within existing market regulations while introducing new methods for asset ownership and transfer, including wallet-based management and expedited settlement. Transfer agents such as Computershare are central to this process, maintaining shareholder records and managing corporate actions.
By embedding their solution at this level, the companies aim to circumvent a common crypto workaround where tokens merely represent claims on shares instead of being direct representations of the shares themselves.
Securitize is a blockchain company that facilitates the issuance, trading, and management of real-world assets like equities and funds in tokenized form on blockchain networks.
In this arrangement, Computershare will serve as transfer agent for both traditional and tokenized shares, managing records and handling events such as dividends or stock splits across these formats.
While Securitize provides the necessary technology, similar to other recent ventures in the sector, the blockchain aspect operates predominantly behind the scenes. The tokens are crafted to signify direct ownership rather than being derivatives built on existing stocks.
“ISTs do not depend on derivative tokens that overlay underlying shares,” stated Carlos Domingo, CEO of Securitize. “They enable U.S. issuers to establish direct equity ownership in token form.”
The extensive reach of Computershare could offer significant scale to this initiative. The company serves over 25,000 firms and functions as a transfer agent for approximately 58% of the S&P 500.
This framework also ensures that issuers maintain control over their shareholder base, which is crucial for public companies. “Our objective has been to empower U.S.-listed companies to issue tokenized equity while maintaining control,” noted Ann Bowering, CEO of issuer services at Computershare North America.