Securitize, Cantor target tokenized IPOs for public markets

Securitize and Cantor target tokenized IPOs and secondary equity offerings for public markets, building infrastructure within the existing US securities framework. Announced Wednesday, the partnership would let companies raise capital through blockchain-based primary and follow-on issuances while Securitize handles tokenization and Cantor brings equity capital markets expertise.

Key Takeaways

• Securitize and Cantor Fitzgerald will support blockchain-based IPOs and follow-on equity offerings for listed companies.
• Securitize supplies tokenization infrastructure; Securitize Markets handles offering and settlement; Cantor contributes equity capital markets and trading capabilities.
• The framework targets both initial public offerings and secondary issuances by already public companies.
• Tokenized stocks onchain have grown about 16% in 30 days to nearly $1.9 billion, according to RWA.xyz.
• The move builds on Securitize's prior SPAC merger backed by Cantor Fitzgerald.

What did Securitize and Cantor announce?

Securitize and Cantor Fitzgerald have partnered to support blockchain-based initial public offerings and follow-on equity offerings for listed companies. The companies said Wednesday they are developing a framework for primary issuances that would allow firms to raise capital through tokenized securities while remaining within the existing regulatory framework for public offerings.

The framework would support both IPOs and follow-on, or secondary, offerings, in which already public companies issue additional shares to raise capital. Under the agreement, Securitize will provide the tokenization infrastructure used to issue, distribute and service the digital securities.

How would tokenized IPOs work under US rules?

Securitize Markets, Securitize's SEC-registered broker-dealer affiliate, will participate in the offering and settlement process. Cantor will contribute its equity capital markets and trading capabilities typically associated with public offerings.

The companies said the framework is meant to keep issuances within the existing regulatory framework for public offerings. That focus reflects a broader shift toward tokenized securities in traditional finance, even as much tokenization activity has centered on private credit and Treasurys.

Why does this matter for public markets now?

The announcement comes as tokenized securities gain traction across traditional finance. While tokenization has largely focused on private credit and Treasurys, companies are increasingly exploring blockchain-based infrastructure for public equities as well.

The market for tokenized stocks has expanded rapidly over the past year, outpacing much of the broader digital asset market. The value of tokenized stocks onchain has increased 16% over the past 30 days to nearly $1.9 billion, according to RWA.xyz.

The growth is drawing established financial institutions deeper into the sector. As The Wall Street Journal reported Wednesday, the Depository Trust & Clearing Corp. plans to pilot the tokenization of stocks and US Treasurys with nearly 40 financial companies, including JPMorgan and Goldman Sachs. The trial follows DTCC's May announcement that it aims to roll out tokenized trading services by October.

What else is happening in tokenized equities?

Assets slated for tokenization in the DTCC pilot include shares of Microsoft and stablecoin issuer Circle, as well as exchange-traded funds tracking the S&P 500 index, the Nasdaq 100 index and short-term US Treasury bonds.

The Securitize-Cantor collaboration builds on an existing relationship between the companies. Securitize, which provides blockchain infrastructure for tokenized real-world assets, went public through a merger with a special purpose acquisition company backed by Cantor Fitzgerald. For more coverage of digital-asset infrastructure and capital-markets shifts, see our Fintech & Crypto Alerts section.