Bullish, Equiniti, Alpaca, Apex Fintech Solutions and DriveWealth have formed a new industry group focused on building standards for tokenized securities linked directly to the companies that issue them.
The Issuer Sponsored Token Coalition was unveiled to advocate for tokenized shares that remain tied to official shareholder records, preserving voting rights, dividends and other ownership benefits. The group plans to work on technical standards, settlement, custody and methods to move securities between traditional market infrastructure and blockchain networks.
The effort addresses a distinction that has gained attention as firms develop products offering stock exposure without always granting holders direct ownership of underlying shares. The coalition's issuer-sponsored model aims to tie tokenized shares directly to a company's official shareholder register, narrowing the gap between economic exposure and full shareholder rights.
The distinction became prominent following a dispute between AMC Entertainment CEO Adam Aron and Robinhood, which centered on whether synthetic or tokenized products may leave investors with economic exposure to a stock but without the same legal rights as registered shareholders.
Tom Farley, CEO of Bullish, said the group was formed to establish foundational architecture for tokenized markets. Alpaca indicated it plans to contribute through its Instant Tokenization Network to enable interoperability between traditional securities and onchain markets. Apex Fintech Solutions, which provides infrastructure for broker-dealers, said the group could help establish standards connecting tokenized markets with existing systems.
The coalition's work follows a U.S. Securities and Exchange Commission exemption allowing limited onchain trading of U.S.-listed equities under certain conditions.
