Bullish and Equiniti have teamed up with Alpaca, Apex Fintech Solutions, and DriveWealth to establish the Issuer Sponsored Token Coalition. The newly formed alliance aims to tie tokenized public shares directly to the official shareholder registers of corporations.
The group plans to develop operating frameworks, infrastructure, and industry standards for issuer-sponsored tokenized securities. Furthermore, the participants intend to integrate blockchain-based assets seamlessly with traditional capital markets.
A primary ownership concern drives the initiative, given that certain products currently labeled as tokenized equities fail to grant investors the same privileges as conventional shares.
Coalition Targets Shareholder Rights in Tokenized Stocks
Under the coalition’s proposed issuer-sponsored model, these digital securities would link straight to the authoritative shareholder register of an issuer. Such an arrangement ensures that corporate-action entitlements, dividends, and voting rights remain intact.
Consequently, investors who hold eligible tokenized securities can preserve the same ownership safeguards tied to standard public shares. Blockchain technology will serve as modern infrastructure without severing the direct tie between shareholders and issuers.
Naureen Hassan, CEO of DriveWealth, noted that much of what the market currently calls tokenized equity falls short of true direct ownership, a gap the coalition aims to bridge.
Hassan explained that an issuer-sponsored framework preserves corporate-action entitlements and voting rights even as market infrastructure transitions onchain. DriveWealth will collaborate with other coalition partners to build this model.
Ultimately, the alliance focuses on establishing authentic ownership rather than merely delivering blockchain-connected exposure to listed equities.
SEC Framework Shapes Emerging Onchain Equity Market
The coalition’s debut arrives in the wake of the U.S. Securities and Exchange Commission’s Innovation Exemption issued on September 17, which authorizes restricted onchain trading of equities listed in the U.S.
The SEC framework mandates that trading venues confirm tokenized shares grant holders identical rights and privileges to conventional counterparts, placing proper shareholder treatment at the forefront of onchain market growth.
While this regulatory relief lasts for a five-year duration, the SEC is actively gathering public feedback regarding the future evolution of tokenized markets.
These regulatory demands directly support the coalition’s issuer-sponsored strategy, as members advocate for tokenized shares tied directly to official corporate databases rather than functioning independently of legacy ownership structures.
Tom Farley, CEO of Bullish, emphasized that public companies must maintain their central role in communicating with shareholders, urging industry participants to build the correct architecture throughout the tokenization process.
Farley views tokenization as a mechanism that transforms static assets into dynamic, transparent digital shares while retaining essential legacy market protections.
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Market Infrastructure Firms Focus on Interoperability
Alpaca will supply infrastructure designed to bridge legacy securities markets with onchain ecosystems, building on its existing Instant Tokenization Network that converts traditional equities into tokenized equivalents.
Arush Sehgal, Alpaca’s Head of Digital Assets, stated that tokenization introduces innovative channels linking issuers and investors, provided that vital shareholder safeguards are preserved during expansion.
Drawing on experience across issuers, broker-dealers, and investors, Apex Fintech Solutions will lend its expertise. Travis McGhee, Global Head of Digital Markets at Apex, remarked that scalable tokenized securities depend entirely on robust connecting infrastructure.
McGhee emphasized that tokenized markets require standardized frameworks capable of upholding investor protections and existing relationships, prompting Apex to join the coalition.
Equiniti and Bullish will coordinate alongside the remaining members to formulate the broad frameworks and standards required for issuer-sponsored securities.
As tokenized public securities evolve, the coalition intends to tackle technical specifications, operating guidelines, and market connectivity, ensuring issuers stay connected to investors while blockchain technology revolutionizes trading and settlement.
Final Thoughts
The Issuer Sponsored Token Coalition seeks to link tokenized stocks straight to corporate shareholder databases while safeguarding dividend, voting, and corporate-action rights. As the SEC initiates a five-year framework allowing limited onchain trading for U.S.-listed equities, coalition members will formulate the necessary standards and infrastructure.
