CoinDesk
The SEC has proposed allowing electronic databases, including blockchain ledgers, to serve as the official record of securities ownership. The plan would overhaul five decades-old transfer-agent rules and could make a blockchain the master securityholder file for tokenized securities, rather than a copy of an offchain register. A 60-day public comment period ends in early November.
Why it matters
Tokenized securities often rely on two records: an onchain ledger and a legally recognized shareholder register. If approved, issuers and transfer agents could stop maintaining duplicate records and reconciling them after each transfer. That could cut operating costs and legal uncertainty while reducing the risk of conflicting ownership data in an insolvency or bankruptcy.
Fairmint CEO Joris Delanoue said the proposal recognizes blockchain as the master database, not merely a copy. Centrifuge's Eli Cohen described the shift as turning today's two-step setup into a one-step process.
Market impact
The proposal would not make tokenized securities permissionless. A public blockchain could hold the ownership record while identity checks, transfer restrictions and other securities controls remain embedded in the asset. Transfer agents would still handle inheritance, legal notices, mailing addresses, ownership restrictions and record corrections.
That keeps operational compliance central to the RWA market. Delanoue said mail processing that now takes 3-5 days could fall to 1 day under the proposal, but firms maintaining the official record would still have to run the full transfer-agent function. The practical test becomes whether tokenization firms can operate that infrastructure reliably.
Frequently asked questions
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What problem does the SEC proposal address for tokenized securities?
Tokenized securities often use an onchain ledger alongside a legally recognized shareholder register. The plan could make blockchain the master record and remove the need to reconcile duplicate records.
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Would tokenized securities become permissionless if the plan passes?
No. Identity checks, transfer restrictions and other securities controls would remain even if a public blockchain held the ownership record.
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What duties would transfer agents retain under the proposal?
They would still handle inheritance, legal notices, mailing addresses, ownership restrictions and record corrections, while running the full transfer-agent function.
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How could the proposal change transfer-agent processing times?
Delanoue said mail processing that now takes 3-5 days could fall to 1 day under the proposal.
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When does the SEC's public comment period end?
The proposal has a 60-day public comment period ending in early November.
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