Cantor Fitzgerald announced a partnership with Securitize on Wednesday to facilitate the issuance of blockchain-based shares for companies going public. This collaboration aims to enhance the U.S. equities market by allowing stocks to be issued as digital tokens that can be traded continuously and settled instantly, according to a statement from the firm.
Key Details
Securitize, based in Miami, specializes in creating blockchain-native shares that maintain regulatory similarities to traditional securities. This model differs from the wrapper approach used by companies like Robinhood and Kraken, which involves issuing synthetic tokens based on blocks of stock without direct involvement from the issuing companies. In contrast, Securitize’s model allows firms to have direct control over the tokenized shares they create.
The partnership is significant as most tokenized share trading has utilized the wrapper model, with limited trading of shares issued directly on the blockchain. Cantor Fitzgerald's decision to work with Securitize reflects a growing interest in blockchain technology within the financial sector. Ben Boehmke, Head of Strategies for Equities at Cantor, noted that the firm chose Securitize due to its innovative approach to tokenization.
Background
This development comes as the market for tokenized shares remains in its early stages, with few companies, including Galaxy and Figure, having issued shares natively on the blockchain. The partnership could pave the way for broader adoption of blockchain technology in public offerings.
The move may influence sectors related to digital assets and financial technology, particularly as institutional interest in blockchain-based solutions grows. Investors may see increased volatility in stocks associated with companies adopting these technologies. Watch for further announcements from Cantor Fitzgerald and Securitize regarding specific IPOs utilizing this new model.