On October 27, Equiniti and Bullish hosted “Tokenization and the Future of Public Markets” at the New York Stock Exchange (NYSE). Public company issuers and their advisers heard from both company’s leaders, BlackRock, Fidelity Investments, Invesco, SoFi, moomoo, DRW, and the NYSE about the impact of tokenization on capital markets. The event closed with a live demonstration: Bullish and Equiniti transferred 61 million tokenized Bullish shares onto the Solana public blockchain. The transaction settled in seconds.
Tokenized public company shares are a reality today. The decisions issuers make now will influence how they take part in the next generation of capital markets. Here are five learnings that can help issuers make key decisions now.
1. Tokenization is about expanding access
Panelists described tokenization as a new model for investor access rather than a technology upgrade. A speaker from Fidelity Investments compared the shift to the move from scheduled television to on-demand streaming. The BlackRock panelist outlined three lenses for evaluating tokenization: efficiency, utility, and access.
The benefits are unlikely to be evenly distributed at first. Investors who trade around the clock, use decentralized finance, or have limited access to traditional markets may gain the most. For investors well served by today’s markets, the improvement may be incremental. Issuers should assess which of their shareholders stand to benefit most.
2. AI and tokenization will reinforce each other
Speakers named three catalysts for adoption: more capital moving onchain through stablecoins and the GENIUS Act; growing investor demand for broader access; and artificial intelligence (AI) that can simplify how investors interact with blockchain technology.
— BlackRockThese are siblings, they are not twins. AI is the bigger theme, unquestionably, but there’s a mutual synergy that each will help catalyze the other.”
3. Market infrastructure is advancing, and clear standards will matter
A NYSE leader described reporting tokenized trades to the consolidated tape, the same public record used for traditional trades. NYSE also plans to expand trading hours. The DRW panelist noted that continuous liquidity will depend on clear standards for token delivery, collateral use, and operational risk management.
4. Issuers should remain at the center
The Securities and Exchange Commission (SEC) has opened a regulatory pathway through its Innovation Exemption. Qualifying trading venues can now offer third-party tokenized versions of a company’s shares.
Issuer-sponsored tokens offer a different approach. Working with their transfer agent and market partners, issuers can set the rules for how tokenized shares are issued, held, and transferred, including wallet eligibility requirements. The Invesco panelist described smart contracts as programmable if-then workflows. These can support transfer restrictions, vesting schedules, and new forms of shareholder engagement.
— Tom Farley, Chief Executive Officer, BullishOur one message is that the issuer needs to be at the center of [tokenization].”
5. Adoption will build gradually, so preparation should start now
Speakers expect adoption to follow a classic S-curve: gradual at first, then accelerating. Traditional and tokenized systems are likely to operate side by side for years. Markets outside the US, where settlement and access gaps are wider, may move first.
Key challenges for implementation include:
- A shortage of specialized talent.
- Privacy considerations around onchain wallet positions.
- An education gap among issuers.
While public companies don’t need to tokenize their shares immediately, they should begin preparing now. Speakers recommended three steps: educate leadership teams, define the specific problem to solve, and ask detailed questions about each use-case.
What stays the same
As markets evolve, the transfer agent must still maintain the official record of who owns what.
— Dan Kramer, Chief Executive Officer, EquinitiOur relationship will stay the same, and the trust you put in us will stay the same. We will earn that every day. A phrase I heard recently that I really like is that you cannot tokenize trust.”
How should a public company start?
Public companies don't need to tokenize their shares tomorrow, but they should be preparing today. Start by understanding the opportunities, evaluating the potential benefits for your company and shareholders, and bringing the right stakeholders to the table. The decisions issuers make now could shape how they participate in the next generation of capital markets.
To start the conversation, talk to your Equiniti relationship manager or contact us below.