Coalition Backs Issuer-Sponsored Tokenized Shares to Protect Investor Rights
Bullish, Equiniti, Alpaca, Apex Fintech Solutions, and DriveWealth have formed the Issuer Sponsored Token Coalition. The group plans standards and infrastructure for tokenized public shares linked to official shareholder registers. It aims to preserve voting rights, dividends, and corporate-action entitlements for holders of qualifying tokenized securities.
The Issuer Sponsored Token Coalition brings together Bullish, Equiniti, Alpaca, Apex Fintech Solutions, and DriveWealth. It intends to create common standards, infrastructure, and operating rules for tokenized public shares that remain connected to a company's authoritative ownership record.
This effort follows the SEC's September 17 Innovation Exemption, which allows limited onchain trading of U.S.-listed equities for five years and requires venues to confirm token holders receive the same rights as traditional shareholders. DriveWealth's Naureen Hassan and Bullish's Tom Farley have emphasized direct ownership and keeping public companies central as tokenization develops.
If adopted, issuer-sponsored tokenized shares may give retail and institutional investors clearer ownership protections when using blockchain-based products. Companies could gain another way to engage shareholders, while intermediaries might need new systems. Regulators may face pressure to oversee cross-market standards. However, outcomes depend on adoption and implementation.