NewsCryptoSecuritize Launches Onchain Trading of U.S. Stocks for Eligible Global Investors

Securitize Launches Onchain Trading of U.S. Stocks for Eligible Global Investors

Author: Globalfintechseries·

Key Takeaways

  • •Securitize Stocks launch as 1:1 share-backed security entitlements covering twelve major U.S. equities, including Apple, Microsoft, Nvidia, Tesla, and Palantir, for eligible investors in the U.S., EU, and other permitted jurisdictions.
  • •Each token is structured as a security entitlement under UCC Article 8, preserving economic benefits such as dividends and, where applicable, voting rights, and the backing shares will not be lent out.
  • •Trading begins on Solana with USDC settlement through Securitize's registered broker-dealer, supported by Jump Trading as market maker via the Solana PropAMM, initially during extended hours with plans to move toward 24/7 availability.
  • •The products are expected to trade on the NYSE's planned 24/7 digital trading venue and the OKXICE Tokenized Securities Venue, subject to regulatory and operational requirements.
  • •The convertible entitlement token structure supports issuer-sponsored tokenization by allowing investors to convert their entitlements into shares recorded directly on a company's transfer agent register.
Securitize Launches Onchain Trading of U.S. Stocks for Eligible Global Investors

Securitize, Inc., a platform for tokenized assets, has launched Securitize Stocks, bringing some of the world’s most widely held U.S. equities onchain for eligible investors in the United States, the European Union (EU) and other permitted jurisdictions worldwide.

Securitize Stocks provide eligible investors with access to 1:1-backed U.S. equities. The initial offering will include security entitlements to shares of AAPL, MSFT, NVDA, GOOG, TSLA, META, AMZN, NFLX, CRCL, SPCX, MSTR and PLTR — a lineup that includes several of the largest U.S.-listed companies by market value. The products will initially launch on Solana and trade through Securitize’s registered broker-dealer platform.

Securitize Stocks are also expected to trade on a new 24/7 digital trading venue being developed by the New York Stock Exchange (NYSE), subject to the venue’s launch and applicable regulatory and operational requirements. The planned connectivity would provide another pathway for tokenized U.S. equities to trade through infrastructure being developed by one of the world’s leading exchange operators. Venue launches, regulatory sign-offs and the shift from extended hours to round-the-clock trading are the checkpoints to watch as tokenized U.S. equities move closer to traditional market infrastructure.

Unlike products that primarily provide economic exposure to a stock’s price, Securitize Stocks are backed 1:1 by underlying shares. They are structured to preserve the investor rights and economic benefits associated with those shares and, where available, can be converted into direct ownership recorded on the books of the issuer’s transfer agent. The offering is intended to support the adoption of issuer-sponsored tokenization — a model in which companies tokenize their own shares rather than relying on third-party wrappers — as more issuers embrace the technology.

“Tokenized stocks should give investors more than a price on a wrapper that tracks a stock and is only offered offshore,” said Carlos Domingo, Chairman and CEO of Securitize. “The opportunity is to bring equities onchain without leaving behind the ownership, investor protections and market infrastructure that make U.S. capital markets work. Securitize Stocks are designed around principle, while creating a bridge to a future where issuers themselves can participate directly in tokenization.”

Features of Securitize Stocks

1:1 backing and security entitlements. Each token is backed one for one by an underlying share and represents a security entitlement under UCC Article 8, the part of U.S. commercial law that governs securities held through intermediaries. This preserves applicable rights and economic benefits, including dividends and, where the underlying class carries them, voting rights. Securitize said this distinguishes the products from offerings primarily designed to track a stock’s performance.

Global availability. Securitize Stocks will be available to eligible investors in the U.S., EU and other permitted jurisdictions, subject to applicable securities laws, sanctions requirements and other restrictions.

No share lending. The shares backing Securitize Stocks will not be lent out. The tokens are designed to support additional onchain utility over time, including supported lending and collateral markets such as Aave, a decentralized finance lending protocol.

A bridge to issuer-sponsored tokenization. Securitize Stocks use a convertible entitlement token (CET) structure. When a company adopts issuer-sponsored tokenization, investors can convert their security entitlements into actual shares recorded on the company’s register through Securitize’s partnerships with leading transfer agents.

Compatibility with evolving U.S. market structure. The offering is designed to be consistent with SEC guidance on tokenized securities. Secondary-market trading is offered for Securitize Stocks in a regulated manner through Securitize’s broker-dealer, without the need for exemptions. The products are also expected to be eligible for trading on Tokenized Securities Venues (TSVs), as contemplated by the SEC’s Innovation Exemption.

Securitize Stocks are also expected to be available on the OKXICE Tokenized Securities Venue (TSV). The venue combines OKX’s blockchain technology and global reach with the regulatory experience and institutional connectivity of Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange.

The TSV is intended to bring tokenized U.S. equities onchain in a compliant, permissioned environment, with plans for 24/7 trading, instant settlement and self-custody of exchange-listed securities for a global audience.

“Global demand for U.S. equities is undeniable. Investors everywhere want access to the world’s deepest, most innovative capital markets, on their terms and around the clock. OKXICE is being built for exactly this kind of product: unlocking 24/7 access to U.S. stocks for global investors while preserving the full shareholder rights, protections and economic benefits they expect,” said Governor Andrew M. Cuomo, Co-Chair of OKXICE.

Solana Launch and Market Infrastructure

Securitize selected Solana as the launch network for onchain trading of Securitize Stocks, with transactions settling in USDC, a U.S. dollar stablecoin. Solana is also one of the networks where Securitize’s own tokenized common stock has traded since its NYSE listing in July.

“Solana is the financial infrastructure for the 5.5 billion people on the internet. Tokenized equities give investors around the world access to investments they might otherwise never have had the opportunity to participate in, at internet scale,” said Nick Ducoff, GM, Institutional, Solana Foundation. “Securitize Stocks demonstrate what becomes possible when real securities and shareholder rights are combined with fast, efficient blockchain infrastructure. We’re excited to see Securitize launch this offering on Solana as the Token Supercycle accelerates and more of the world’s capital markets move onchain.”

Securitize Stocks combine infrastructure spanning blockchain technology, liquidity, brokerage, clearing, settlement and transfer agency to connect traditional U.S. securities markets with onchain markets.

At launch, the products will be available through Securitize’s existing Solana PropAMM, an onchain market-making mechanism. Jump Trading will serve as a market maker to support liquidity, price discovery and execution consistent with applicable market requirements. Trading will initially be available during extended hours, with plans to move toward 24/7 availability.

Securitize Stocks will trade alongside issuer-sponsored tokenized equities, including Securitize’s own stock, SECZ. Access will remain subject to onboarding, KYC/AML checks, jurisdictional eligibility and applicable securities laws.

“Bringing U.S. equities onchain requires liquidity infrastructure capable of delivering the execution quality investors expect from modern markets,” said a spokesperson for Jump. “PropAMMs on Solana have demonstrated that onchain markets can deliver tight spreads, deep liquidity and transparent price discovery at significant scale. We’re excited to bring that technology on Securitize’s platform to Securitize Stocks and help build efficient, liquid markets for tokenized U.S. equities.”

Institutional market participants are also expected to play a growing role as tokenized equities develop. Ripple Prime plans to support the launch of Securitize Stocks and explore opportunities to incorporate the assets into its broader institutional trading ecosystem.

“Securitize has been a leader in bringing institutional assets onchain, and this launch represents an important next step for tokenized capital markets, requiring the issuance, collateral and liquidity that robust markets need,” said Noel Kimmel, President, Ripple Prime. “As traditional and digital infrastructure converge, Ripple Prime is proud to work with partners driving how these assets become part of a broader institutional trading ecosystem.”

Tokenized equities also have potential applications in onchain financial markets, including supported lending and collateral arrangements.

“Bringing high-quality assets onchain expands what is possible across decentralized finance,” said Stani Kulechov, Founder of Aave. “Securitize has been a pioneer in connecting regulated financial assets with blockchain infrastructure, and Securitize Stocks represent an important step forward. As tokenized equities develop, we’re excited about the potential for these assets to become increasingly useful across onchain markets, including through lending and collateral applications.”

Behind the onchain trading experience, Securitize Stocks will connect with established securities-market infrastructure for clearing, custody and settlement.

“The evolution of tokenized equities depends on institutional-grade clearing, custody and settlement infrastructure that can support innovation while upholding the standards of the U.S. securities markets,” said Michael Sanocki, CEO, RQD*. “We’re excited to support Securitize as it builds a framework designed to connect onchain markets with the infrastructure that underpins traditional equities today.”

Source: Globalfintechseries