Cantor Fitzgerald and Securitize Join Forces on Blockchain-Powered Public Offerings
A partnership between Cantor Fitzgerald and Securitize aims to build the necessary infrastructure to enable tokenized initial public offerings and secondary equity issuances under current US securities regulations.
A new collaboration between Cantor Fitzgerald and Securitize aims to bring blockchain technology to traditional initial public offerings (IPOs) and subsequent equity raises for publicly traded firms, potentially marking a significant expansion of tokenized securities into mainstream capital markets.
In an announcement made Wednesday, the partners outlined their plans to build a comprehensive framework for primary capital raises that would enable corporations to secure funding via tokenized securities while operating fully within the current regulatory structure governing public markets. This framework is designed to accommodate not only initial public offerings but also follow-on equity raises, where companies already trading publicly issue new shares to obtain additional capital.
According to the terms of the partnership, Securitize will supply the blockchain tokenization technology required to create, distribute and manage these digital securities. The company's broker-dealer arm, Securitize Markets, which holds SEC registration, will take part in both the offering process and settlement procedures. Meanwhile, Cantor will bring its expertise in equity capital markets and the trading capabilities that are standard components of public share offerings.
This partnership announcement arrives at a time when tokenized securities are experiencing growing adoption throughout the traditional financial sector. Though tokenization efforts have predominantly concentrated on private credit instruments and Treasury securities, an increasing number of firms are now investigating blockchain-based systems for public equity markets as well.
The new venture extends an already established business relationship between these two organizations. Securitize, a provider of blockchain technology for tokenizing real-world assets, completed its transition to a publicly traded company by merging with a special purpose acquisition company (SPAC) that had Cantor Fitzgerald's backing.
Wall Street shows growing appetite for tokenized equities
The tokenized stock sector has experienced substantial expansion throughout the previous year, surpassing growth rates seen in many other segments of the digital asset ecosystem. Over the last 30 days alone, the aggregate value of tokenized equities recorded onchain has climbed 16% to reach approximately $1.9 billion, based on data from RWA.xyz.
This expansion is attracting major traditional financial institutions to increase their involvement in this emerging space. According to a Wednesday report in The Wall Street Journal, the Depository Trust & Clearing Corp. (DTCC) has plans to conduct a pilot program for tokenizing equities and US Treasury securities with approximately 40 financial firms participating, including major players like JPMorgan and Goldman Sachs. This experimental initiative comes after DTCC announced in May its intention to launch tokenized trading capabilities by October.
The assets designated for tokenization in this trial include equity shares of Microsoft (MSFT) and stablecoin provider Circle (CRCL), along with exchange-traded funds that track major indices such as the S&P 500, the Nasdaq 100, and short-duration US Treasury securities.