Polymarket · SEC · CoinDesk
Why a new SEC plan could ease a legal headache for tokenized securities
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Here is an awkward problem for companies that are putting stocks on a blockchain: The onchain data can show who owns the token, but the legal shareholder record sits somewhere else.
Key facts
- Tokenized equities lead RWA inflows as the market recovers; Binance's bStocks hit ~$118.5M in two months, now #2 issuer and ~90% of on-chain equity DEX volume
- Firms must receive, open, identify and act on mailed documents under prescribed procedures, Delanoue pointed out, adding that the current processing window is 3-5 days, while the proposal
- The master securityholder file used to be paper cabinet,” said Joris Delanoue, CEO of SEC-registered onchain transfer agent Fairmint
- What's next is a 60-day public comment period, ending in early November, on the agency's proposal
Summary
The SEC has proposed allowing electronic databases, including blockchain ledgers, to serve as the official record of securities ownership. The change could eliminate duplicate offchain shareholder records, reducing reconciliation costs and legal uncertainty for tokenized securities. Transfer agents would still have to enforce securities rules and handle administrative duties, with public comments on the proposal due in early November. So, when it comes to which database to consider as the legal record for these tokenized stocks, lawyers will currently pick the one that isn't on the blockchain, even if the actual data is more up to date on the digital ledger.