Investment firm Cantor Fitzgerald has partnered with blockchain broker-dealer Securitize to create a framework for tokenized initial public offerings (IPOs) and follow-on equity offerings. This collaboration aims to maintain compliance with existing US regulatory structures.
Details of the Partnership
Securitize will use its tokenization infrastructure, while Cantor Fitzgerald will contribute its expertise in equity capital markets. The partnership seeks to establish a model where the token itself represents the actual security, avoiding synthetic products or wrappers. Securitize’s SEC-registered broker-dealer division, Securitize Markets, will play a role in the offering and settlement processes. According to Carlos Domingo, CEO of Securitize, this alliance enables companies to integrate blockchain technology with traditional capital markets.
Growth of Tokenized Stocks
Meanwhile, the market for tokenized stocks has shown significant growth, increasing by 16% over the past month, reaching nearly $1.9 billion in total value. This surge has attracted the attention of major financial institutions, including the Depository Trust & Clearing Corporation (DTCC), which is piloting tokenization projects involving around 40 firms, such as JPMorgan and Goldman Sachs. The DTCC aims to launch tokenized trading services by October and is including notable assets like shares of Microsoft and exchange-traded funds that track major indices.
This material is for informational purposes only and should not be considered as financial advice.
