CoinDesk
Bullish President Stacey Cunningham says stock issuers are central to the digital asset platform's tokenization plans, with its planned $4.25 billion acquisition of transfer agent Equiniti providing a potential route to corporate clients. Equiniti has relationships with nearly 3,000 issuers and more than 20 million shareholders. The deal is expected to close in January 2027, subject to regulatory approvals.
Why it matters
Cunningham, a former president of the New York Stock Exchange, argues that issuers are often excluded from discussions about synthetic tokenized stocks. Transfer agents maintain official share ownership records, making them important to models designed to give tokenized shares the same legal and economic rights as conventional stock.
Some tokenized products offer exposure to share prices without equivalent ownership rights. Cunningham says benefits for issuers could include better visibility into shareholders, faster settlement and simpler recordkeeping, though the outcome depends on how the shares and supporting systems are structured.
Market impact
Corporate cooperation remains a hurdle. By Nov. 6, 56 of 62 companies initially selected for a planned OKX and Intercontinental Exchange tokenized-stock venue had objected, according to a CoinDesk tally. The objections do not necessarily mean the companies oppose tokenization itself.
Bullish has tested its approach with its own shares on Solana and demonstrated a transfer of 61 million reserved tokenized shares administered by Equiniti. It has identified Solana, Ethereum and Aptos for its services. Cunningham says Bullish can build under existing rules without waiting for comprehensive U.S. crypto legislation.
Frequently asked questions
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How would Equiniti support Bullish's tokenization plans?
Equiniti maintains shareholder records and has relationships with nearly 3,000 corporate issuers and more than 20 million shareholders. Bullish plans to combine that business with its digital asset operations.
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When is the Equiniti acquisition expected to close?
The planned acquisition is expected to close in January 2027, subject to regulatory approvals.
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Why do shareholder rights matter for tokenized stocks?
Some tokenized products offer exposure to share prices without the same ownership rights as the underlying stock. Transfer agents maintain official ownership records and could be important to models that preserve those rights.
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What corporate resistance has a rival tokenized-stock venue faced?
By Nov. 6, 56 of the 62 companies initially selected for the planned OKX and Intercontinental Exchange venue had objected, according to a CoinDesk tally. The objections do not necessarily indicate opposition to tokenization itself.
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Which blockchains has Bullish identified for its tokenization services?
Bullish has identified Solana, Ethereum and Aptos. It has also tested tokenization using its own shares on Solana.
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