Fintech Firms Unite to Set Standards for Tokenized Stocks

A coalition of financial firms has been formed to set standards for tokenized stocks. The group includes Bullish, Equiniti, Alpaca, Apex Fintech Solutions and DriveWealth.

The Issuer Sponsored Token Coalition aims to build technical standards for tokenized securities tied directly to company shareholder registers. This is meant to protect rights like voting and dividends, as well as participation in corporate actions.

The group's launch follows a recent regulatory change by the U.S. Securities and Exchange Commission, which issued an Innovation Exemption on September 17. The exemption allows limited blockchain trading of U.S.-listed stocks, requiring platforms to confirm that tokenized shares carry the same rights as traditional shares.