Key Takeaways:
- Tokenization is working today with Equiniti moving over 61 million tokenized Bullish shares onto a public blockchain.
- Issuer tokens put companies in control of how their shares are brought onchain. Working with their transfer agent and market partners, issuers can establish rules governing how tokenized shares are issued, held, and transferred.
- Now is the time to prepare. In September, the Securities and Exchange Commission (SEC) issued its Innovation Exemption. Qualifying trading venues can now offer third-party-tokenized versions of a company's shares, provided the issuer receives 30 days' advance notice and does not object.
- What is coming will be gradual, then fast. Expect longer trading hours and new investor relations tools first, with traditional and tokenized markets running side by side for years.
- The official record still matters. A transfer agent must still keep the record of who owns what. You cannot tokenize trust.
What happened at the NYSE on October 27, 2026?
Equiniti and Bullish (NYSE: BLSH) hosted “Tokenization and the Future of Public Markets” in the boardroom of the New York Stock Exchange. Dan Kramer, Chief Executive Officer of Equiniti, and Tom Farley, Chief Executive Officer of Bullish, welcomed public company issuers and their advisers. Two panels featured industry leading speakers from BlackRock, SoFi, Invesco, the NYSE, moomoo, Fidelity, and DRW.
To close the event, Bullish and Equiniti demonstrated the transfer of 61 million tokenized Bullish shares on the Solana public blockchain, completing the transaction in seconds. The demonstration showed how issuer tokens can move shares onchain while maintaining the official shareholder record. Tokenized public company shares are no longer just a concept. They’re a reality today.
What is tokenization?
Tokenization is the process of representing an asset, such as a share of stock, as a digital token on a blockchain. A blockchain is a shared digital ledger that records transactions. By bringing shares onto a blockchain, tokenization can make ownership easier to track, shares faster to transfer, and new ways of trading and engaging with shareholders possible.
What are issuer tokens?
Issuer tokens allow public companies to bring their actual shares onchain while preserving shareholder rights and the official record of ownership. Working with their transfer agent and market partners, issuers can establish controls over how tokenized shares are issued and transferred, including requirements for eligible wallets. The result is greater transparency and control over share ownership without creating a separate, synthetic version of the stock.
Why does tokenization matter now?
Tokenization has moved from pilot to practice because five things have come together.
What changed | Why it matters to issuers |
|---|---|
The SEC has opened a regulatory pathway. The SEC issued its Innovation Exemption on September 17, 2026. | Qualifying venues can now trade tokenized US stocks under set conditions. |
Third parties can move first. Qualifying venues can offer certain third-party-tokenized stocks following 30 days’ advance notice to the issuer, provided the issuer does not object. | Issuers need to understand their options and be prepared to respond before the objection period expires. |
Large institutions are active. Asset managers run tokenized funds. Brokers and banks offer tokenized products to retail customers. | Investor demand for tokenized access is building. |
More capital is on-chain. Stablecoins, now covered by a 2025 US law known as the GENIUS Act, bring more money onto blockchains. | Tokenized shares have a growing pool of capital to trade against. |
Preparation takes time. Structuring tokenized shares takes close work across teams. | Companies that start in the initial slow phase will be ready for the faster phases that follow. |
What changes for public companies?
Issuer tokens open up four important opportunities for public companies and their shareholders.
Benefit | What it means for the issuer |
|---|---|
Shareholder visibility | Issuer tokens can provide greater visibility into registered shareholder ownership and transfers, creating opportunities for more direct shareholder engagement, including benefits for long-term holders. |
Built-in rules | Smart contracts can support programmable rules, including transfer restrictions, wallet eligibility requirements, and other compliance controls. |
Trading beyond market hours | Eligible tokens can trade beyond traditional market hours on supported venues, with the potential for faster settlement. |
Collateral mobility | Tokenized shares could eventually support more flexible collateral arrangements across financial platforms, subject to applicable regulations and infrastructure. |
What is coming next?
Speakers at the NYSE described a classic adoption curve: slow, slow, slow, then fast. Traditional and tokenized systems will run side by side for years. Here is what to expect along the way.
Stage | What to expect |
|---|---|
Now | Promising regulatory pathways emerging. First issuer tokens are live. New trading venues preparing to offer tokenized securities. Issuers evaluating their options. |
Next | Expanded trading hours. More capital moving on-chain. Emerging investor relations applications of shareholder data, such as perks for long-term holders or rewards for voting. |
Later | Around-the-clock trading with faster settlement. Tokenized shares used as collateral across venues. Programmable shareholder services, such as vesting, built into the share. |
What stays the same?
A transfer agent still has to keep the official record of who owns what. You cannot tokenize trust.
Equiniti, a transfer agent with 97 years of experience in registration and share plan services, keeps that record for public companies. Tokenization changes how shares move, but it does not change the need for a trusted record of who owns them.
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 email Marketing.US@equiniti.com.