coindesk.com
Investment giant Cantor Fitzgerald and cryptocurrency-focused broker-dealer Securitize (SECZ), are revamping initial public offerings (IPOs) with tokenization and blockchain technology, the companies said on Wednesday.
Under the agreement, Cantor will leverage its equity capital markets and trading capabilities, while Securitize will provide the tokenization infrastructure used to issue, distribute, and service tokenized securities, according to a press release.
Large traditional finance players are taking rapid steps towards the tokenization of capital markets. This week the Depository Trust & Clearing Corporation (DTCC) announced further plans to tokenize stocks with a range of partners including JPMorgan, Goldman Sachs, BlackRock and Vanguard.
The collaboration will enable public companies to raise capital and issue securities onchain with improved operational efficiency and modernized ownership records, while still operating within the established capital markets framework of traditional public offerings, the companies said.
Rather than focusing on tokenized funds or secondary trading, this partnership extends blockchain infrastructure directly into IPOs and follow-on offerings, a Securitize spokesperson said in an email.
The partnership advances an issuer-sponsored approach in which the token represents the actual security (not a wrapper, SPV or synthetic exposure), and tokenization becomes part of the issuance process rather than something layered on afterward, the spokesperson said.
Public companies shouldn't have to choose between access to traditional capital markets and the benefits of blockchain technology that improve how securities are issued, distributed, owned, and serviced, said Carlos Domingo, Co-Founder and CEO of Securitize.
“This partnership brings together the capabilities required to support capital formation onchain within existing regulatory frameworks. It's another step toward a future where digital securities become a standard part of how capital markets operate,” Domingo said.
“Tokenization is becoming part of mainstream capital markets, and partnering with Securitize allows us to bring the rigor of traditional equity capital markets to onchain settlement and distribution. This gives our clients innovative new ways to raise and access capital as markets evolve," added Pascal Bandelier, Co-CEO and Global Head of Equities at Cantor.