The U.S. Financial Industry Regulatory Authority granted Securitize approval to become the first broker-dealer capable of underwriting and providing custody for tokenized initial public offerings, a landmark decision integrating blockchain with regulated capital markets.
"Bringing custody of tokenized securities into the broker-dealer is a foundational unlock," Carlos Domingo, Co-Founder and CEO of Securitize, said. "It allows us to facilitate atomic settlement transactions between securities and cash equivalents within our broker-dealer ATS, eliminating the need for fragmented processes and enabling markets to operate with the speed and efficiency of blockchain infrastructure within a regulated environment."
The approval, granted through FINRA's Continuing Membership Application process, permits Securitize Markets to custody digital asset securities, clear trades, and operate as a selling group participant for initial and secondary offerings. This enables atomic swaps between tokenized securities and stablecoins onchain, a process that previously required multiple complex steps across separate accounts and intermediaries.
This regulatory green light could significantly expand the market for real-world assets onchain, a sector projected to reach $30 billion in the U.S. by the third quarter of 2025. The move aligns the U.S. with global regulators in the UK, Canada, and South Korea, potentially accelerating plans by companies like Discord to pursue a tokenized IPO.
A Broader Push into Tokenization
Securitize's approval is the latest in a series of major developments bringing traditional financial infrastructure onto blockchain rails. It follows the New York Stock Exchange's announcement of its own platform for tokenized securities, which also leverages Securitize as a digital transfer agent. Similarly, the Depository Trust & Clearing Corporation (DTCC), which custodies over $114 trillion in assets, is set to launch its own tokenized securities trading service in October 2026 with backing from more than 50 financial firms, including BlackRock, Goldman Sachs, and Citadel Securities.
"The underwriting and selling group approvals greatly enhance our capabilities to assist tokenizing securities during the IPO process," Brett Redfearn, President of Securitize, said. "The case for new and existing publicly traded companies to tokenize stock continues to get more compelling."
What to Watch Next
Market participants see the FINRA approval as a moderately positive signal for the likelihood of more tokenized IPOs occurring before 2027. Observers should monitor for subsequent announcements from the SEC and CFTC that could further solidify the legal framework for digital asset securities. The industry will also be watching to see if major tech firms or other private companies announce plans to go public via a tokenized offering in response to the clearer regulatory environment.
This article is for informational purposes only and does not constitute investment advice.
