Groundbreaking Alliance in Capital Markets
In a groundbreaking alliance aimed at revolutionizing capital markets, Cantor Fitzgerald and Securitize have joined forces to integrate blockchain technology into the processes of initial public offerings (IPOs) and subsequent stock sales. This partnership, unveiled on July 15, paves the way for companies to raise funds and issue securities directly onchain while adhering to regulatory standards for public offerings.
Leveraging Expertise and Technology
Cantor Fitzgerald will leverage its expertise in equity capital markets and trading capabilities, while Securitize will provide the necessary technological infrastructure for issuing and servicing tokenized securities. Their registered broker-dealer affiliate, Securitize Markets, will also be integral to the offering and settlement procedures.
Focus on Original Issuance
A unique feature of this collaboration is its focus on the original issuance process rather than merely tokenizing existing stocks. This approach enables organizations to conduct IPOs and follow-on offerings utilizing blockchain infrastructure, thus maintaining compliance within the conventional framework of regulated public markets.
Carlos Domingo, the co-founder and CEO of Securitize, emphasized that companies in the public sphere should not feel compelled to choose between traditional and blockchain capital market solutions.
Currently, the partnership has not announced any specific companies planning to adopt this innovative model, nor have they set a timeline for the first offering.
Recent Developments and Trends
This announcement follows Securitize’s recent entry into public markets, which occurred on July 2 when it began trading on the New York Stock Exchange under the ticker SECZ while also launching tokenized versions of its shares on the Solana and Avalanche blockchains. These tokenized shares correspond directly to SECZ common stock, thus avoiding discrepancies between share classes.
The development coincides with a broader trend among significant financial institutions to adapt traditional securities onto blockchain platforms. Recently, the Depository Trust & Clearing Corporation (DTCC) initiated a tokenization project in collaboration with financial giants such as BlackRock, JPMorgan, Goldman Sachs, and Vanguard.
Moreover, the New York Stock Exchange has moved toward blockchain securities integration by proposing to permit tokenized shares to trade alongside conventional securities while preserving their rights and features. Securitize has also engaged with the NYSE in relation to its upcoming tokenized securities platform.
Issuer-Directed Tokenization
The Cantor-Securitize framework centers on issuer-directed tokenization, where blockchain tokens will represent the actual securities, eschewing the reliance on special-purpose vehicles or synthetic products.
Pascal Bandelier, Co-CEO of Cantor and Global Head of Equities, noted the increasing normalization of tokenization within mainstream capital markets.
This partnership seeks not only to implement tokenization in secondary trading but also to directly facilitate capital-raising activities, marking a significant step forward in the landscape of IPOs and public offerings. Securitize, already a key player in institutional tokenization with connections to over 650 funds and leading asset managers, aims to further bolster its strategy through this new venture, though the identity of the first issuer remains undisclosed at this time.
