Securitize has opened access to tokenized stocks with a direct legal link to company equity. This instrument eliminates the use of synthetic derivatives and offshore layers, the announcement states.
Users can now buy securities for stablecoins using familiar Web3 mechanisms while remaining within the US legal framework.
The End of the Synthetic Era
According to the press release, the market is flooded with “tokenized stocks” that offer only price exposure rather than actual ownership. Issuers of such products often use special purpose vehicles (SPVs) and legal structures outside the issuer’s jurisdiction, creating counterparty risks.
For example, the resource rwa.xyz trades four versions of the Tesla token, and none of them grants voting rights or a spot on the company’s cap table.
Securitize has shifted this approach: the blockchain serves as the authoritative record of ownership. The company operates as a transfer agent registered with the US Securities and Exchange Commission (SEC).
Previously, this architecture was tested on shares of Exodus Movement, Inc., which became the first public company to issue equity onchain.
“Purchases are made with stablecoins via an atomic swap. To access trading, the user completes the Securitize ID procedure. Acquired tokens are delivered to the investor’s non-custodial wallet. The asset is protected from rehypothecation without the owner’s consent and guarantees the receipt of dividends,” Securitize stated.
Additionally, holders of paper shares from participating issuers can convert their assets into tokenized form via the Direct Registration System (DRS) and hold them independently.
Trading runs around the clock through the registered broker-dealer Securitize Markets and the company’s European division. The pricing mechanism adapts to the operating hours of traditional exchanges:
- US markets are open. Trades are executed under the NBBO (National Best Bid and Offer) rule. The investor receives the best publicly available price without deviations.
- US markets are closed. An automated market maker (AMM) activates. Smart contracts regulate the price based on real demand and supply in liquidity pools.
This approach ensures trading continuity and the fulfillment of broker obligations for Best Execution according to FINRA requirements.
DeFi Uses
Tokenization turns stocks into a programmable asset. They can interact with smart contracts and serve as collateral. Securitize is testing the use of regulated securities in lending protocols through integrations with Aave Horizon and Loopscale.
SEC Chair Paul Atkins previously emphasized the distinction between decentralized protocols and centralized entities. The Securitize model follows this vector, combining DeFi liquidity with the guarantees of traditional finance.
This post is for informational purposes only and does not constitute advertising or investment advice. Please do your own research before making any decisions.