Tokenization of Equities: A Controlled Concession to Blockchain

The tokenization of equities has been hailed as a validation of the crypto thesis, but experts say it's not a migration to blockchain infrastructure. Instead, it's a controlled integration of the blockchain as an additional settlement layer within the existing system.

There are three structural models operating in parallel: third-party issuers, regulated exchanges, and synthetic assets. Tokenized securities issued by third-party platforms do not grant token holders property rights or voting privileges, but instead represent a claim on underlying assets held in custody.

The SEC's approval of Nasdaq's proposal and the launch of DTC's tokenization service have been seen as major developments in this space. However, these initiatives do not replace the existing settlement infrastructure, but rather create an additional layer.