CoinDesk
The New York Stock Exchange has tapped Broadridge Financial Solutions to provide shareholder voting and digital transfer agency services for its planned tokenized securities platform. The work is intended to connect onchain shares with ownership records, shareholder communications and corporate voting, including voting through supported digital wallets, brokerage platforms or Broadridge’s ProxyVote service.
Why it matters
Tokenized stock trading needs more than a blockchain venue. Issuers also need systems to track ownership, distribute dividends and let shareholders exercise their rights. Broadridge provides corporate services to more than 10,000 public companies globally and says it settles over $15 trillion in securities trades daily, bringing established market infrastructure into the NYSE’s plans.
The company joins Securitize and tZERO, which are also set to provide transfer agency services for the platform. Broadridge has been expanding its blockchain operations through its DLX tokenization platform and Distributed Ledger Repo network, which it says processes more than $360 billion in transactions daily.
Market impact
The NYSE is among several major institutions pursuing tokenized securities. Nasdaq is developing its own infrastructure, while the DTCC has unveiled a platform for eligible firms to tokenize stocks, ETFs and U.S. Treasuries held at its depository. The DTCC platform focuses on custody and transfers, rather than trading.
The initiatives point to different routes for bringing securities onto blockchain networks, with shareholder rights and existing market functions remaining central to the NYSE’s approach. The exchange has not yet launched its planned venue.
Frequently asked questions
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What services will Broadridge provide for the NYSE’s planned platform?
Broadridge will provide shareholder voting and digital transfer agency services, connecting tokenized shares with ownership records, shareholder communications and corporate voting.
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How could investors vote on tokenized shares?
Investors could vote through supported digital wallets, brokerage platforms or Broadridge’s existing ProxyVote service.
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Why does tokenized stock trading need transfer agency services?
Companies need to track share ownership and support shareholder communications and voting as securities change hands.
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Which other firms are set to provide transfer agency services for the NYSE platform?
Securitize and tZERO are also set to provide transfer agency services for the planned platform.
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How does the DTCC’s tokenization platform differ from the NYSE project?
The DTCC platform focuses on custody and transfers of eligible securities held at its depository. The NYSE is developing a tokenized stock trading venue.
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