SEC Proposes Blockchain Solution for Tokenized Stocks' Dual Ownership Record
The US Securities and Exchange Commission (SEC) has proposed a solution to the long-standing problem of tokenized stocks' dual ownership records. Currently, tokenized stocks have two separate ownership records: one on the blockchain showing which wallet holds the token, and another maintained by a transfer agent.
The SEC's new proposal would allow electronic databases, including blockchain ledgers, to serve as the official record of securities ownership, effectively making the blockchain the 'master securityholder file'. This change would reduce the need for reconciliation and minimize legal and operational risks.
However, it's essential to note that this does not mean all off-chain records will disappear. Transfer agents would still maintain records such as the control book and transfer journal to track authorized and outstanding securities, as well as record issuance, cancellation, and transfer activity.