Financial Firms Unite to Set Tokenization Standards for Stock Trading

A coalition of five major financial firms has formed to establish industry-wide standards for tokenized stock trading. The Issuer Sponsored Token Coalition aims to create frameworks for blockchain-based securities linked to official company registers.

The alliance, led by Bullish and Equiniti, seeks to address the challenge of maintaining shareholder privileges in digital tokens. This includes voting rights, dividend payments, and involvement in corporate governance activities.

The coalition's formation comes after the U.S. Securities and Exchange Commission introduced an Innovation Exemption on September 17, permitting controlled blockchain-based trading of securities listed on U.S. exchanges.