Key facts
- Securitize and Cantor Fitzgerald are partnering to develop infrastructure for tokenized IPOs and secondary equity offerings.
- The collaboration aims to allow companies to raise capital through digital securities within existing regulatory frameworks.
- Securitize will provide tokenization technology and its affiliate will participate in offering and settlement.
- Cantor Fitzgerald will contribute its expertise in equity capital markets and trading.
- The market for tokenized stocks has seen significant growth, with on-chain value reaching nearly $1.9 billion.
Securitize and Cantor Fitzgerald have announced a partnership aimed at developing the infrastructure for tokenized initial public offerings (IPOs) and secondary equity offerings within the existing U.S. securities framework. This collaboration seeks to enable companies to raise capital through digital securities while complying with current regulations for public offerings.
Under the agreement, Securitize will provide the necessary tokenization infrastructure for issuing, distributing, and servicing the digital securities. Its affiliate, Securitize Markets, an SEC-registered broker-dealer, will be involved in the offering and settlement processes. Cantor Fitzgerald will contribute its expertise in equity capital markets and trading, which are typically associated with public offerings.
This initiative comes at a time when tokenized securities are gaining increasing attention in traditional finance. While the focus has often been on private credit and U.S. Treasurys, companies are now exploring blockchain-based infrastructure for public equities. The partnership builds on a previous relationship between Securitize and Cantor Fitzgerald, as Securitize previously went public via a SPAC merger backed by Cantor Fitzgerald.
The market for tokenized stocks has expanded significantly over the past year, with its on-chain value increasing by 16% in the last 30 days to nearly $1.9 billion. This growth is attracting major financial institutions, with the Depository Trust & Clearing Corp. (DTCC) planning a pilot program for tokenizing stocks and U.S. Treasurys involving approximately 40 financial companies, including JPMorgan and Goldman Sachs. Assets slated for this pilot include shares of Microsoft, stablecoin issuer Circle, and ETFs tracking the S&P 500 and Nasdaq 100.