Solana Scores Big Win as Securitize Launches Tokenized Stocks

Key Developments

SOL has secured another institutional use case with Securitize, a tokenization company, launching a new platform that allows for tokenized shares of some of the biggest U.S. publicly listed companies on a blockchain.

Benefits for Investors

Securitize's stocks will be available to eligible investors in the US, EU, and other jurisdictions, and will offer settlement via the USDC stablecoin on Solana. This means that investors will have the economic benefits and investor rights associated with the underlying stock shares, including dividend payments and voting rights when applicable.

Regulatory Compliance

Securitize claims that there is no lending of the underlying shares, and uses a convertible entitlement token (CET) structure that will enable investors to convert their tokenized entitlements to directly registered shares, when tokenization for those shares is supported by the corresponding issuer.

Expansion Plans

The tokenized stocks will be available via the upcoming 24/7 digital trading venue on the New York Stock Exchange, subject to regulatory and operational prerequisites. The products are also likely to be available on the proposed OKXICE Tokenized Securities Venue, which features a collaboration between cryptocurrency exchange OKX and the parent company of the NYSE, Intercontinental Exchange (ICE).

Conclusion

This development may help bolster Solana as a blockchain infrastructure for traditional financial assets, and provides a new opportunity for institutional investors to access tokenized stocks on a blockchain.