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- Securitize to launch onchain stocks, blending equity with blockchain.
- Tokenized stocks offer full shareholder rights, including dividends and voting.
- Blockchain-driven stocks bring DeFi innovation into regulated financial markets.
Securitize, a leader in tokenization, has revealed plans to launch onchain stocks in the coming months, marking a significant step in the tokenized real-world assets (RWA) sector. Such onchain stock will be actual, controlled stocks, listed in a cap table of a company, and will be entitled to all shareholder privileges, such as voting and dividends. Simultaneously, they will be entirely compatible in the decentralized finance (DeFi) world.
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True Ownership, Not Derivatives
The company insisted that the tokenized shares would not be a synthetic product or derivative, but actual ownership in companies. In contrast to the current tokenized stock schemes, which tend to depend on derivatives, SPVs, or offshore schemes, Securitize is expected to fill the gap between traditional equities and blockchain by proposing a product that is fully in accordance with financial regulations.
According to Securitize, many of the current offerings of the tokenized equities usually have problems related to price inconsistencies, counterparty risk, and regulatory concerns. They may also fail to have the required KYC and AML controls since these models are usually dependent on the structures such as special purpose vehicles or custodial arrangements. Conversely, the new service provided by Securitize will be fully regulated, and the blockchain will be the source of record on the ownership.
Redefining Market Participation
The example of a securitize onchain stock model will be that of the firm as the registered transfer agent, where all the trades will be conducted via its SEC-registered broker-dealer, which will be named as Securitize Markets. The blockchain will allow real-time settlement of the trade, which is a significant improvement to the conventional exchanges, which are based on T + 2 settlement cycles. Moreover, in the closed markets, the pricing model that Securitize will apply to set prices will be an automated market maker, which will adjust the price according to the onchain activity.
This new product is an introduction of blockchain transparency and efficiency to the traditional equity market through which investors can have a smooth and safe interaction with stocks without violating the rights of traditional shareholders. The innovation offered by Securitize is sure to bring new opportunities to the world of finance in the areas of capital formation, liquidity, and collateralization, making it a game-changer in the changing world of finance.
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