CoinDesk
Bullish, Equiniti, Alpaca, Apex Fintech Solutions and DriveWealth have formed the Issuer Sponsored Token Coalition to develop standards for tokenized securities. The group wants onchain shares to remain linked to an issuer's official shareholder register, preserving voting, dividend and corporate-action rights.
The coalition's launch follows a U.S. Securities and Exchange Commission exemption allowing limited onchain trading of U.S.-listed equities under certain conditions. Its members plan to address technical standards, settlement, custody and the movement of securities between traditional market infrastructure and blockchain networks.
Why it matters
The effort focuses on the legal distinction between issuer-sponsored tokens and synthetic products that only track a stock's price. Investors may receive economic exposure through a synthetic product without holding the same rights as a registered shareholder. The dispute involving AMC Entertainment CEO Adam Aron and Robinhood brought that distinction into sharper focus.
Issuer-sponsored tokenization is designed to close that gap by connecting the token directly to the company's records. That connection could preserve voting and dividend rights while giving issuers and investors a clearer route into onchain markets.
Market impact
The coalition brings together an issuer-services firm, broker and trading infrastructure providers, and crypto-market companies. Equiniti is being acquired by Bullish, while Alpaca plans to contribute interoperability through its Instant Tokenization Network.
The immediate market signal is a push for common infrastructure rather than another standalone stock product. Standards for custody, settlement and interoperability will help determine whether tokenized equities can connect regulated market systems with blockchain networks without stripping away shareholder rights.
Frequently asked questions
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What is the Issuer Sponsored Token Coalition?
It is an industry group formed by Bullish, Equiniti, Alpaca, Apex Fintech Solutions and DriveWealth to develop standards for issuer-backed tokenized securities.
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How would issuer-sponsored tokenized shares work?
The tokenized share would remain linked to the issuing company's official shareholder register, preserving rights such as voting, dividends and participation in corporate actions.
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How do issuer-sponsored tokens differ from synthetic stock products?
Synthetic products can provide economic exposure to a stock without giving holders the same legal rights as registered shareholders. Issuer-sponsored models aim to connect the token directly to the issuer's records.
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What will the coalition work on?
Its agenda includes technical standards, settlement, custody and interoperability between traditional securities infrastructure and blockchain networks.
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Why is the SEC exemption relevant to tokenized stocks?
The exemption allows limited onchain trading of U.S.-listed equities under certain conditions, creating a regulatory setting for the coalition's infrastructure and standards work.
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