Investment giant Cantor Fitzgerald and cryptocurrency-focused brokerage Securitize (SECZ) are revamping initial public offerings (IPOs) with tokenization and blockchain technology, the companies said Wednesday.
Under the agreement, Cantor will leverage its equity capital markets and trading capabilities, while Securitize will provide the tokenization infrastructure used to issue, distribute and service tokenized securities, according to a press release.
Large traditional financial players are taking rapid steps towards tokenization of capital markets. This week, the Depository Trust & Clearing Corporation (DTCC) announced new plans to tokenize stocks with a variety of partners, including JPMorgan, Goldman Sachs, BlackRock, and Vanguard.
The collaboration will enable public companies to raise capital and issue securities on-chain with improved operational efficiency and modernized ownership registries, while still operating within the established capital markets framework of traditional public offerings, the companies said.
Rather than focusing on tokenized funds or secondary trading, this partnership extends blockchain infrastructure directly to IPOs and follow-on offerings, a Securitize spokesperson said in an email.
