A coalition of financial and crypto infrastructure firms has launched an effort to create standards for tokenized stocks that remain anchored to official shareholder registers. Announced Thursday, the Issuer Sponsored Token Coalition includes Bullish, Equiniti, Alpaca, Apex Fintech Solutions and DriveWealth.
The group plans to develop technical standards around settlement, custody, interoperability and the movement of securities between traditional market infrastructure and blockchain networks. Its core model is “issuer-sponsored tokenization,” where a tokenized share is tied directly to the issuing company’s official shareholder register, preserving voting rights, dividends and corporate-action entitlements.
Bullish CEO Tom Farley said: “The architecture we establish now matters and that is why we are bringing together this group of leading firms to chart the course.” Bullish agreed in May 2026 to acquire shareholder-services firm Equiniti for $4.2 billion, with closing expected in January 2027 pending regulatory approvals.
The coalition launch follows the SEC’s September 17 Innovation Exemption, a five-year conditional framework that permits limited onchain trading of U.S.-listed stocks through qualifying Tokenized Securities Venues. The SEC requires tokenized shares to carry the same rights as traditional shares, making issuer-linked shareholder records and transfer-agent infrastructure critical.
The group will focus on four areas: shareholder rights, interoperability between traditional and blockchain systems, adoption infrastructure and an open marketplace ecosystem. Members plan to review blockchain architectures and smart contracts, study regulatory requirements, build prototypes, and meet with issuers and capital-market leaders at the New York Stock Exchange on October 27.
Alpaca said it will contribute its Instant Tokenization Network to help connect traditional securities with onchain markets. Apex Fintech Solutions and DriveWealth add brokerage and clearing experience, while Equiniti provides shareholder-record infrastructure. The announcement comes amid debate over whether tokenized stock products give investors actual ownership; a recent dispute between AMC Entertainment CEO Adam Aron and Robinhood highlighted products that offer price exposure without legal shareholder rights.
