Major investment institution Cantor Fitzgerald and digital securities platform Securitize have revealed a strategic alliance to facilitate tokenized initial public offerings and subsequent equity fundraising rounds for publicly traded corporations.
The collaboration merges Cantor’s extensive experience in equity capital markets and trading operations with Securitize’s blockchain-based infrastructure for creating, distributing, and managing tokenized securities.
Securitize Markets, the SEC-registered broker-dealer subsidiary of Securitize, will participate in the offering and settlement procedures. The arrangement is structured to comply with current US securities laws rather than circumvent them.
Differentiating itself from alternative tokenization approaches, this partnership emphasizes making the digital token serve as the primary security — rather than functioning as a derivative or synthetic instrument built upon traditional assets.
Carlos Domingo, Co-Founder and CEO of Securitize, emphasized that organizations shouldn’t face a binary choice between conventional capital markets and blockchain innovation.
“This partnership brings together the capabilities required to support capital formation onchain within existing regulatory frameworks,” Domingo said.
Pascal Bandelier, Co-CEO and Global Head of Equities at Cantor, noted that tokenization is transitioning into mainstream financial markets and the partnership provides clients with innovative capital-raising and investment options.
The two organizations already share a business history. Securitize completed its public listing through a combination with a special purpose acquisition vehicle sponsored by Cantor Fitzgerald.
The overall tokenized stock sector has demonstrated significant momentum. Blockchain-based tokenized equity values have climbed 16% during the previous 30-day period to approach $1.9 billion, based on information from RWA.xyz.
This expansion is attracting increased participation from established financial institutions. The Depository Trust & Clearing Corporation (DTCC) intends to test tokenization of equities and US government bonds with approximately 40 financial organizations, including JPMorgan and Goldman Sachs.
The DTCC testing program comes after a May disclosure that it targets launching tokenized trading capabilities by October. Securities included in the trial encompass Microsoft shares and stablecoin provider Circle, along with exchange-traded funds tracking the S&P 500 and Nasdaq 100 indices.
The Cantor-Securitize structure focuses on primary issuances — the stage where companies initially access capital — instead of secondary market trading of previously issued securities.
This approach integrates blockchain technology at the origin of the capital formation process, rather than applying it retroactively.
Securitize explained that the issuer-sponsored model ensures the token constitutes the actual security itself, providing it with equivalent legal status as a conventionally issued equity share.
The alliance adds to an expanding roster of initiatives by major financial institutions exploring tokenized securities infrastructure as the sector develops.
The post Cantor Fitzgerald Teams Up with Securitize to Tokenize IPOs on Blockchain Technology appeared first on Blockonomi.