Tokenization has a significant potential to transform capital markets, a promising agreement in real time, broader access to investors and greater programability between financial infrastructure. But while the rails are evolving, the current models for tokenized actions remain fragmented, opaque and misaligned with the safeguards that define the markets of traditional values.
Today there are two dominant approaches:
He wrapping model IU tokenized that provides synthetic exposure to existing actions instead of direct property. These tokens do not grant the holders any right of government or claims required to underlying actions. The transferability is generally restricted to closed ecosystems, liquidity is on -awaited on platforms controlled by the emitter and regulation can be cloudy, with many products that are not available for people.
He Chain emission model It means creating a class of native digital actions issued through blockchain. While this approach aligns more closely with the legal definition of security, introduces operational complexities and scalability challenges. The active participation of the issuer is mandatory, liquidity remains fragmented between chain tokens and traditional values and stockbroad standards are inconsistent, which complicates participation for financial institutions and regulated investors.
What is missing is a tokenization model that combines the speed, accessibility and composition of tokenization with the structure, safeguards and the clarity of traditional capital markets. Fortunately, that model already exists elsewhere: Deposit receipts (Drs).
In many ways, the DRS were the original form of tokenization. For more than a century, American deposit receipts (ADR) They have allowed foreign actions to trade in the US. through a regulated structure backed by custody. Today, this framework can also unite traditional values with tokenized infrastructure, offering a scalable and legally solid base for modern actions.
The case of Tokenized Drs
When combining blockchain rails with the legal and operational framework of DR, market participants can unlock a broader participation and real -time asset service without compromising investor protections or operational standards.
Other benefits include:
- Preservation of shareholders’ rights
Unlike synthetic wrappers, the perfect ADR structure is the rights of shareholders, which allows them to move to tokens holders. This includes economic entities, such as dividends and other corporate actions, as well as government rights such as vote.
- Clear segregation of duties
A regulated custodian bank shines the underlying actions in a segregated bankruptcy and bankruptcy structure, maintained only for the benefit of ADR holders. An independent and neutral depositary of the market facilitates the emissions and cancellations of DR, maintains precise records using a transfer agent registered in SEC and performs daily reconciliation with the underlying assets. The depositary does not have a property claim on the underlying actions.
ADRs are recognized as values under US law. For years, they have been used to allow US investors to possess and negotiate foreign actions in US markets. In addition, the receipt structure has been flexible to allow the fractionalization of the preferred actions of the United States. Regarding the tokenized values, Commissioner Hester Peirce, in his last statement about tokenization, mentioned that “a Token could be a receipt for security.”
- Complete fungibility and market access
ADRs are totally fungible and can be exchanged for their underlying actions, allowing non -taxable conversions on the same day. They can be made available to participants of the retail and institutional market who can choose to maintain token or traditional values without sacrificing rights or liquidity. ADR’s fungibility is backed by MSCI’s analysis, indicating that, on average, the ADRS trades parity with its underlying local actions.
ADRs can be implemented by emitters of shares and participants of the secondary market, improving scalability and adoption, unlike the emission models in the chain that depend on the start of the issuer and active maintenance.
A trusted mechanism for bridges markets
Proven and fully integrated in global finances, applying the ADR structure to tokenized actions is a logical evolution.
As mature token, this type of innovation is essential to climb adoption and trust. As well as the DEC 12G3-2 rule(b) Simplified access to foreign issuers, a similar regulatory mechanism could unlock broader tokenized capital markets, allowing public companies to offer tokenized shares to US investors compatible.
The way forward does not require inventing a new wrapper, it requires adapting one proven. In other words, the bridge between traditional finances and digital infrastructure already exists. You just need to be carefully stunned.
