Solana (SOL) has secured another institutional use case with Securitize, a tokenization company, launching a new platform that allows for tokenized shares of some of the biggest U.S. publicly listed companies on a blockchain.
Securitize has launched Securitize Stocks to allow eligible investors to trade tokenized U.S. equities on Solana using its registered broker-dealer platform, according to a Thursday announcement.
The initial portfolio of 12 stocks consists of major companies such as Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA).
Other stocks listed include Circle (CRCL), Strategy (MSTR), Palantir (PLTR) and SPCX.
Securitize’s stocks will be available to eligible investors in the United States, the European Union, and other jurisdictions.
Importantly, settlement for transactions of the tokenized equities will be done via the USDC stablecoin on Solana.
What sets Securitize’s tokenized stocks apart?
Securitize Stocks are different from some other tokenized equity products since they are backed 1:1 with the underlying stock shares.
Each token is a security entitlement under Article 8 of the Uniform Commercial Code (UCC). It has the corresponding economic benefits and investor rights.
This allows eligible investors to receive dividends as well as voting rights (when applicable) as opposed to just having exposure to the price movement of a stock.
Securitize also claims that there’s no lending of the underlying shares.
In addition, the company uses a convertible entitlement token (CET) structure that will enable investors to convert their tokenized entitlements to directly registered shares, when tokenization for those shares is supported by the corresponding issuer.
Another shot in the arm from Wall Street
This development may help bolster Solana as a blockchain infrastructure for traditional financial assets.
Securitize has also announced plans for the tokenized stocks to be made available via the upcoming 24/7 digital trading venue on the New York Stock Exchange, subject to regulatory and operational prerequisites.
The products are also likely to be available on the proposed OKXICE Tokenized Securities Venue, which features a collaboration between cryptocurrency exchange OKX and the parent company of the NYSE, Intercontinental Exchange (ICE).
Trading on Securitize’s platform will initially be available only during extended trading hours, but the company plans to eventually offer a 24/7 solution.