NYSE Taps Securitize to Build Tokenized Securities Platform

With this partnership, the exchange (NYSE) has named Securitize the first digital transfer agent eligible to mint blockchain-native securities for corporate or ETF issuers on the platform, the two organizations announced in a Tuesday (March 24) news release.

The companies say they will work together to create standards for digital transfer agents and tokenization agents taking part in the digital ecosystem. The focus here will be on developing “regulatory, operational, and technology requirements” for institutional-grade tokenized securities infrastructure, the release said.

“The NYSE continues to lead the industry in responsible innovation,” Lynn Martin, president of the NYSE Group, said in the release.

“As we explore how tokenization can enhance capital markets, it is critical that new infrastructure is developed in a way that preserves the trust, transparency, and protections investors expect,” Martin added. “Securitize brings deep experience in digital asset infrastructure and transfer agency, making them a strong partner in helping design this next generation of market structure.”

The partnership was first reported by The Wall Street Journal (WSJ), which notes that several brokerages and crypto exchanges have introduced tokenized versions of popular U.S. stocks and ETFs to investors overseas.

However, the report added, some of these offerings have substantially deviated in value from underlying shares, with critics arguing that they are technically derivatives that don’t offer the same shareholder rights as underlying securities.

“Most of these tokenized equities efforts today, they’re not really tokenizing the equity. They’re creating derivatives or price trackers,” Carlos Domingo, co-founder and CEO of Securitize, told the WSJ. “So this is about really working with the issuers to do native tokenization.”

The announcement follows a report from January that the NYSE was creating a venue for round-the-clock tokenized stock trading.

“This reflects an evolution of NYSE’s trading capabilities which went from trading floor, to electronic order-book, to blockchain,” Michael Blaugrund, vice president of strategic initiatives at NYSE parent Intercontinental Exchange, said in an interview with Bloomberg News.

“It allows for new types of investor accessibility, and will create new opportunities for retail to participate in the stablecoin-funded markets that have attracted their attention.”

Meanwhile, NYSE rival Nasdaq recently got permission from U.S. regulators to allow some securities to trade in tokenized form. Nasdaq also this week teamed with digital assets trading platform Talos to create a solution for managing tokenized collateral.

“The partnership addresses structural barriers that have prevented widespread adoption of tokenized collateral in institutional markets, including the challenge of integrating digital assets into existing risk management and collateral workflows,” the companies said in a news release.