Securitize has unveiled plans to issue real, regulated shares onchain that are representative of full shareholder rights, not synthetic price trackers or IOUs against custodians.

The compliant shares will be recorded directly on the issuer’s cap table and can be traded through familiar Web3 swap-style experiences.

Securitize said the initiative feels like DeFi for investors under the hood, meeting high standards of investor protection, regulatory compliance, and market integrity. The tokenization platform is committed to working with DeFi builders and regulators to integrate public markets with onchain innovation.

According to Securitize, the tokenized stocks will attempt to modernize the traditional stock market experience for most investors. However, most of these tokenized products typically offer exposure, rather than ownership. They rely on SPVs, derivatives, or offshore structures that mirror stock prices despite introducing counterparty risk, fragmentation, and inconsistent pricing. 

In some cases, the issued bearer assets may not be compliant, despite representing securities, as they are issued as permissionless assets without any AML or KYC controls. These instruments do not place investors on the issuer’s cap table, and they do not carry shareholder voting rights. They often rely on legal constructs outside the issuer’s jurisdiction and misrepresent what they are, as they are not tokenized stocks but something else. 

Stocks on Securitize represent real public company equity 

Stocks purchased on Securitize are compliantly issued and maintained on-chain, representing genuine public company equity. Investors who buy a stock on Securitize also appear directly on the issuer’s cap table and receive full shareholder rights, including proxy voting and dividend entitlements.

The shares exist as tokens under self-custody, and the assets cannot be rehypothecated or lent without the owner’s consent. However, the tokens can be transferred peer-to-peer across whitelisted, compliant wallets.

Securitize says this model works because it acts as the U.S. SEC-registered transfer agent. The token itself is the legally recognized share, while blockchain serves as the record of ownership. 

The architecture was demonstrated in 2024 when the publicly traded Exodus Movement Inc. (NYSE: EXOD) issued its equity natively onchain. However, this model is expected to expand rapidly as investors and issuers experience the actual benefits of onchain ownership.

Native issuance provides full onchain tokenized stock trading

Natively tokenized public stocks have remained mainly static assets until now. They are issued onchain, held onchain, but traded through traditional off-chain processes if at all. 

However, with this launch, natively tokenized public stocks can now be sold and bought fully onchain. For the first time, tokenized stocks can be traded in real time through a Web3-native experience. Meanwhile, the transfers comply with the regulatory requirements governing public market trading. Securitize believes this is necessary, despite some in the industry believing it was not possible. 

The tokenization platform has made it possible by combining regulatory engagement, purpose-built infrastructure, and a commitment to protecting investors. It also aims to safely expand tokenization across the industry by sharing the workings of the newly launched real tokenized stocks with the broader ecosystem.

Purchasing stocks on Securitize is designed to feel like Web3, as investors must complete a Securitize ID once to connect their wallets. Investors can use stablecoins to buy stocks through instant onchain swaps and receive shares directly in their wallets.

Meanwhile, the tokenized tokens are available 24/7, including nights, weekends, and holidays. Trading is carried out through Securitize’s regulated broker-dealers, and all transactions are executed through the platform’s U.S. SEC-registered Broker Dealer and ATS, Securitize Markets.

However, European investor orders are processed through Securitize Europe Brokerage & Markets. The platform’s European investment firm was recently approved for a Trading Services System (TSS) license. Securitize Markets supports around-the-clock trading in two different ways, depending on whether U.S. markets are open or closed.

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