Cantor Fitzgerald and Securitize Join Forces to Bring Blockchain-Based IPO Shares to Wall Street
The world of stock offerings is changing fast. Big banks and tech firms are now working together to issue shares as digital tokens on the blockchain. This shift could let people trade stocks 24 hours a day with instant settlement. One major step forward came when Cantor Fitzgerald announced a new partnership with Securitize.
What the Partnership Means
Cantor Fitzgerald is teaming up with Securitize to help companies issue
Unlike some other platforms that create wrapped tokens without company approval, this model gives firms direct control. They decide how many shares to tokenize and keep full oversight.
Native Blockchain Shares vs Wrapped Tokens
There are two main ways to create blockchain stock tokens today:
- Native model: Companies work directly with platforms like Securitize to issue real digital shares on the blockchain.
- Wrapper model: Firms buy regular shares and put them in a special fund, then issue tokens that track the value.
The native approach is seen as safer because it involves the company itself. Wrapped tokens can be created without the original company knowing, which raises questions about oversight.
Why Cantor Fitzgerald Chose This Path
Cantor has years of experience in crypto. The firm already holds reserves for Tether and runs funds for Bitcoin and tokenized gold. This background makes it a good fit for helping companies explore tokenized offerings.
Leaders at Cantor expect crypto-friendly founders to lead more IPOs in the future. They also see room for partial tokenized offerings, where 5 to 10 percent of an IPO could be issued as digital shares. Hedge funds that understand blockchain may find this option very useful.
Future Growth and Regulation
Experts believe the native blockchain model will grow once clear rules are in place. Company leaders are already noticing synthetic versions of their stocks trading without much oversight. This awareness may push more firms to choose regulated, blockchain-native options.
The partnership is not limited to IPOs. Cantor also plans to support other types of offerings, such as tender offers, using the same technology.
Benefits for Companies and Investors
Tokenized shares offer several clear advantages:
- Trading can happen around the clock.
- Settlements happen instantly instead of taking days.
- Companies keep better control over their shares.
- Investors get a more transparent and secure way to hold digital stock.
This move by Cantor Fitzgerald shows that traditional finance is ready to embrace blockchain for real stock offerings. As more companies explore this option, the market for