SEC Seeks to Make Blockchain-Ledgered Records Standard for Tokenized Stocks

The US Securities and Exchange Commission (SEC) has proposed an update to its transfer-agent rules, which could modernize the way blockchain-ledgered records are used for tokenized stocks.

According to the proposal, a transfer agent could maintain its master securityholder file on a blockchain, allowing electronic databases, including blockchain ledgers, to serve as the official record of securities ownership.

This would mean that a properly governed blockchain ledger could replace the parallel off-chain shareholder register that tokenized stocks currently maintain. This change could eliminate duplicate off-chain shareholder records, reducing the need for reconciliation and helping clarify legal ownership for tokenized securities.