TLDR
- Major financial institutions launched the Issuer Sponsored Token Coalition to establish tokenized securities frameworks
- Coalition members include Bullish, Equiniti, Alpaca, Apex Fintech Solutions, and DriveWealth
- Initiative responds to SEC’s September 17 Innovation Exemption enabling onchain equity transactions
- Framework designed to maintain essential shareholder privileges including voting rights and dividend distributions
- Coalition scheduled to convene with company issuers at NYSE on October 27
Leading financial services companies have established a groundbreaking coalition dedicated to creating industry standards for tokenized equities. The alliance brings together Bullish, Equiniti, Alpaca, Apex Fintech Solutions, and DriveWealth.
Formally named the Issuer Sponsored Token Coalition, the partnership was revealed this Thursday.
Bullish and Equiniti spearheaded the initiative’s formation. Equiniti serves as a shareholder services provider currently in the process of being acquired by Bullish.
Coalition’s Strategic Objectives
The alliance intends to develop comprehensive technical frameworks for tokenized securities. These protocols will address settlement procedures, custody arrangements, and the mechanisms for transferring securities between conventional markets and blockchain platforms.
The primary emphasis centers on issuer-sponsored tokenization. Under this model, tokenized shares maintain a direct connection to the issuing company’s official shareholder registry.
This framework aims to safeguard essential privileges such as voting rights and dividend payments. It also ensures investors can participate in corporate actions.
The subject has gained significant traction recently. Certain financial products provide exposure to stock prices without conferring actual ownership to purchasers.
A public dispute between AMC Entertainment’s CEO Adam Aron and Robinhood highlighted this concern. The controversy centered on whether synthetic or tokenized instruments grant investors equivalent legal protections as officially registered shareholders.
Issuer-sponsored frameworks seek to eliminate this discrepancy. The digital token maintains a direct link to the corporation’s official shareholder records.
“The architecture we establish now matters and that is why we are bringing together this group of leading firms to chart the course,” said Tom Farley, CEO of Bullish.
Regulatory Catalyst Behind the Initiative
The coalition’s formation comes on the heels of significant regulatory developments. The U.S. Securities and Exchange Commission introduced an Innovation Exemption on September 17.
This exemption permits restricted blockchain-based trading of publicly traded U.S. equities. It mandates that platforms verify tokenized shares provide identical rights as conventional shares.
The exemption remains valid for a five-year period.
Alpaca announced its intention to facilitate connections between conventional securities and blockchain-based markets. The company will leverage its Instant Tokenization Network for this purpose.
“Getting it right means preserving shareholder rights and ensuring onchain markets remain connected to the markets they’re built on,” said Arush Sehgal, head of digital assets at Alpaca.
Apex Fintech Solutions delivers infrastructure solutions for broker-dealers and financial institutions. The firm stated the coalition could facilitate integration between tokenized markets and legacy systems.
The coalition has identified four primary focus areas. These include shareholder rights preservation, interoperability between traditional and blockchain infrastructure, adoption frameworks, and creating an open marketplace ecosystem.
Activities will encompass evaluating blockchain architectures and smart contract implementations. The coalition will also analyze regulatory compliance requirements and develop initial prototypes.
Coalition members have scheduled a gathering with company issuers and capital market executives for October 27. This conference will be hosted at the New York Stock Exchange.
Bullish reached an agreement in May 2026 to purchase Equiniti. The transaction carries a $4.2 billion valuation.
The acquisition is projected to finalize in January 2027. Regulatory clearance remains pending.
Coalition membership does not obligate firms to execute trade agreements. Participation also does not constitute endorsement of any particular product.
Additional market participants may become coalition members at a later date, according to the official announcement.
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