.png){kind=logo}
Bullish and Equiniti have launched the Issuer Sponsored Token Coalition alongside Alpaca, Apex Fintech Solutions and DriveWealth. The group wants tokenized public shares tied directly to companies’ official shareholder registers.
The coalition will work on standards, infrastructure and operating frameworks for issuer-sponsored tokenized securities. Its members also want blockchain-based securities to operate alongside existing capital markets.
At the center of the initiative lies a key ownership issue. Some products marketed as tokenized equities may not give investors the same rights as traditional shares.
Under the coalition’s proposed issuer-sponsored model, tokenized securities would connect directly with an issuer’s authoritative shareholder register. That structure could preserve voting rights, dividends and corporate-action entitlements.
As a result, investors holding qualifying tokenized securities could maintain the ownership protections associated with ordinary public shares. Blockchain technology would provide new infrastructure without separating shareholders from issuers.
DriveWealth CEO Naureen Hassan said much of what markets currently describe as tokenized equity does not represent direct equity ownership. She said the coalition intends to address that gap.
Hassan added that an issuer-sponsored model can retain voting rights and corporate-action entitlements while market infrastructure moves onchain. DriveWealth will help develop the model alongside the other coalition members.
The coalition therefore centers its work on direct ownership rather than simply creating blockchain-linked exposure to listed shares.
The coalition's launch follows the U.S. Securities and Exchange Commission's September 17 Innovation Exemption. The measure permits limited onchain trading involving U.S.-listed equities.
Under the SEC framework, venues must verify that tokenized stocks provide holders with the same rights and privileges as their traditional equivalents. That requirement places shareholder treatment at the center of onchain equity development.
The relief will remain available for five years. Meanwhile, the SEC is seeking public comments on how the framework should develop as tokenized markets expand.
For the coalition, those requirements align with its issuer-sponsored approach. Members want tokenized shares connected to official company records rather than operating separately from established ownership systems.
Bullish CEO Tom Farley said public companies should remain central to relationships with their shareholders. He also said market participants need to establish the right architecture as tokenization develops.
Farley described tokenization as a way to turn static assets into more active and transparent digital shares. At the same time, he said existing market protections should remain part of the structure.
Read More: Bitcoin Tops USD 80K as Cryptocurrency Sentiment Shifts Toward Bullish Phase
Alpaca will contribute infrastructure intended to connect traditional securities markets with onchain systems. The company already operates its Instant Tokenization Network for converting tokenized equities and traditional counterparts.
Arush Sehgal, Alpaca's Head of Digital Assets, said tokenization creates new ways to connect issuers and investors. He also said shareholder protections must remain intact as those markets develop.
Apex Fintech Solutions will contribute experience spanning issuers, broker-dealers and investors. Global Head of Digital Markets Travis McGhee said connective infrastructure will determine whether tokenized securities can scale.
According to McGhee, tokenized markets need standards that preserve existing relationships and investor protections. Apex joined the coalition to help develop that infrastructure.
Meanwhile, Equiniti and Bullish will work with the other participants on the wider standards and frameworks needed for issuer-sponsored securities.
The coalition plans to address technical standards, operating structures and market connections as tokenized public securities develop. Its model keeps issuers linked to investors while blockchain infrastructure changes how shares can trade and settle.
The Issuer Sponsored Token Coalition aims to connect tokenized stocks directly with company shareholder registers while preserving voting, dividend and corporate-action rights. Its members will develop standards and infrastructure as the SEC’s five-year framework opens limited onchain trading for U.S.-listed equities.
