IPOs to Move On-Chain as Tokenized Securities Gain Traction

CZ, the founder of Binance, predicts that initial public offerings (IPOs) will move on-chain in the future. This prediction is based on the growing infrastructure for tokenized securities, which are already seeing significant traction.

According to data from RWA.xyz, tokenized stocks currently represent approximately $2.9 billion in distributed value. This figure is roughly 14% higher than it was just a month ago.

The European Union's Distributed Ledger Technology Pilot Regime has been instrumental in facilitating on-chain IPOs. In April, French aerospace and defense supplier ST Group completed a fully tokenized public offering through the Paris-based Lightning Stock Exchange (Lise). The company raised €2.07 million by selling 113,525 shares at €18.25 each.

Nasdaq and the New York Stock Exchange have also established rules for trading eligible tokenized securities under pilots. These programs do not amount to native on-chain IPOs, but they apply blockchain-based settlement to eligible securities already trading within existing market structures.