FINRA Grants Securitize Markets Power to Broaden Tokenized Securities Operations

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Securitize Gets FINRA Approval to Broaden Tokenized Securities Operations

Securitize Markets has been given broader approval from FINRA to handle all aspects of tokenized securities, including safekeeping, finalization, initial sales, and distribution. This allows the firm to support faster, on-chain settlements using stablecoins and grow its involvement in the digital securities market.

Key Takeaways:

  • Securitize Markets received expanded FINRA permissions for tokenized securities custody, settlement, underwriting, and distribution.
  • Transactions can now settle onchain against stablecoins inside a regulated broker-dealer framework.
  • Executives said the approval strengthens infrastructure for tokenized stock offerings and IPO processes.

Securitize Markets Expands Tokenized Securities Custody

Securitize, a major platform for turning assets into digital tokens, announced that its brokerage firm, Securitize Markets LLC, received approval from the Financial Industry Regulatory Authority (FINRA) to do more with tokenized securities. This expanded approval allows Securitize Markets to handle more aspects of the process – including safekeeping, finalizing transactions, and helping companies issue and sell these digital assets – strengthening its position in the growing market for on-chain capital markets.

The core change is operational control. Securitize Markets can now keep tokenized securities inside the broker-dealer while transactions settle against stablecoins on-chain. That structure is designed to reduce the number of separate accounts, parties, and manual steps involved in completing digital securities trades. Securitize stated:

“Through this process, Securitize Markets is now the first company to be approved to custody tokenized securities in a regular broker-dealer, enabling it to facilitate atomic swaps and clear and settle transactions between tokenized securities and stablecoins onchain.”

“The approval also permits Securitize Markets to be an underwriter and selling group participant for both initial and secondary tokenized securities offerings,” the company added. The approval also gives Securitize Markets a larger role in offerings, not only secondary-market activity. Carlos Domingo, Co-Founder and CEO of Securitize, said: “Bringing custody of tokenized securities into the broker-dealer is a foundational unlock. It allows us to facilitate atomic settlement transactions between securities and cash equivalents within our broker-dealer ATS, eliminating the need for fragmented processes and enabling markets to operate with the speed and efficiency of blockchain infrastructure within a regulated environment.”

FINRA Approval Strengthens Onchain IPO Infrastructure

FINRA approved Securitize Markets’ expansion by using the standard process for broker-dealers adding significant new services. This approval gives Securitize Markets greater authority throughout the entire process of issuing and trading tokenized securities, as the company explained.

This achievement is a significant step forward for the trading of digital assets, allowing for instant settlement of transactions within a secure and regulated environment. It also strengthens Securitize’s ability to trade and distribute tokenized securities.

Previously, these transactions required separate intermediaries and accounts before completion. By moving custody and settlement into the broker-dealer, Securitize Markets can create a more direct path for tokenized securities and stablecoin payments.

Securitize has updated its platform to better support companies issuing stock on the blockchain. These improvements cover everything from initial public offerings (IPOs) to secondary offerings, making it easier to manage the entire process of turning traditional stocks into digital tokens. According to Securitize President Brett Redfearn, this makes a strong case for both new and established public companies to explore tokenizing their stock. Ultimately, these changes are moving the industry towards a more complete and regulated system where all aspects of managing digital stock – from safekeeping to trading and final settlement – can be handled within a single, regulated brokerage.

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2026-05-05 05:27