Key facts
- ARK Invest is reportedly positioned to be one of the first asset managers to launch tokenized securities.
Cathie Wood's ARK Invest is reportedly emerging as the frontrunner to launch the first tokenized investment funds in the U.S., potentially outpacing competitors like BlackRock and Fidelity. This development follows a proposed SEC rule change for transfer agents that addresses tokenized securities.
The race to launch the first tokenized funds in the U.S. signifies a major step towards integrating traditional finance with blockchain technology, potentially reshaping investment accessibility and fund management.
Cathie Wood's ARK Invest is reportedly positioning itself to be the first asset manager to launch tokenized investment funds in the U.S., potentially ahead of rivals such as BlackRock and Fidelity. This advancement is contingent on the Securities and Exchange Commission (SEC) approving an innovation exemption related to transfer agents.
According to reports citing sources, ARK Invest is making significant strides towards going live with tokenized securities, utilizing a transfer agent as part of the SEC's proposed innovation exemption framework. The plan is to initially roll out with ARK funds before expanding to others, with Fidelity and WisdomTree also mentioned as likely participants.
This news follows a substantial proposed rule change by the SEC concerning transfer agents, the largest such revision since the early 1980s. The 421-page proposal extensively discusses recordkeeping and tokenized securities, acknowledging the emergence of 'blockchain-native' transfer agents. The SEC is seeking public comment on various aspects, including direct shareholder blockchain record keeping and methods to link wallet addresses to verified investors while maintaining up-to-date ownership records.
Commissioner Hester Peirce highlighted that this proposal has been in development for over a decade, with the last review of transfer agent rules occurring in 2015. The industry is now awaiting potential approval from SEC Chief Paul Atkins for this framework.