Securitize, backed by BlackRock, and Computershare have joined forces to tokenize parts of the $70 trillion U.S. stock market, bridging the gap between traditional Wall Street infrastructure and blockchain technology.
This partnership allows listed companies to offer tokenized equity, known as Issuer-Sponsored Tokens (ISTs), alongside their existing shares. This gives investors the choice to hold stock through traditional channels or in a digital wallet.
The collaboration aims to integrate tokenized shares into the current market framework while providing innovative ways to hold and transfer assets, including faster settlement and wallet-based ownership. Transfer agents like Computershare play a crucial role in maintaining shareholder records and managing corporate actions.
By operating at this level, the companies seek to eliminate the need for tokens to represent claims on shares, opting instead for direct ownership.
Securitize specializes in tokenizing real-world assets such as equities and funds on blockchain networks, facilitating issuance, trading, and management in digital form.
Empowering Transfer Agents with Blockchain
Under this arrangement, Computershare will serve as the transfer agent for tokenized shares, similar to its role with traditional shares. This includes record-keeping and handling events like dividends and stock splits across both formats.
While Securitize provides the underlying technology, the blockchain aspect remains largely in the background. The tokens are designed to represent authentic ownership rather than being derivative tokens layered on top of existing stock.
“Issuer-Sponsored Tokens offer U.S. issuers the opportunity to create direct equity ownership in tokenized form without relying on derivative tokens,” explained Securitize CEO Carlos Domingo.
With Computershare’s extensive reach, this initiative has the potential for significant impact. The company serves over 25,000 firms and acts as a transfer agent for approximately 58% of the S&P 500.
This structure also allows issuers to maintain control over their shareholder base, a critical factor for public companies. “Our focus has been on empowering U.S.-listed companies to issue tokenized equity while retaining control,” stated Ann Bowering, CEO of issuer services at Computershare North America.