Ethereum-focused digital asset treasury firm FG Nexus (FGNX) said Thursday it has tapped tokenization specialist firm Securitize to let investors hold its common and preferred shares as tokens on the Ethereum blockchain.
After Securitize’s tokenization treatment, shareholders can choose to convert their common stock (FGNX) into Ethereum-based tokens, giving them the same legal rights as traditional shares. The company will also tokenize its perpetual preferred stock (FGNXP), which pays regular dividends, making it the first U.S. exchange-listed dividend equity to transition fully onto the crypto rails.
The process aims to streamline how public equities are owned and traded using blockchain rails, while being subject to the same regulations and rights as regular securities. The tokenized shares will be settled in near instantaneously, tracked on blockchain and transferred through Securitize’s SEC-registered broker-dealer and Alternative Trading System (ATS).
“Tokenization is rapidly changing financial markets through increased efficiency and enhanced investor access,” said Maja Vujinovic, CEO of Digital Assets at FG Nexus. “By tokenizing our shares, we’re embracing blockchain technology to further enhance the shareholder experience while maintaining the highest standards of regulatory compliance.”
Shift to onchain
The move comes as tokenization of financial instruments, such as equity shares, bonds, and funds, is gaining momentum across crypto markets.
A wide range of tokenized equity offerings debuted over the past few months, including Robinhood, Gemini, Ondo Finance’s Global Markets and xStocks by Kraken and Backed Finance, creating token versions of the largest publicly-traded companies and ETFs. Some firms, like FG Nexus, have chosen native tokenization, a structure that gives identical rights to token holders as regular shares.
“Our project with FG Nexus is expected to result in U.S. investors being able to hold real stock, not a synthetic wrapper, with instant settlement, automated compliance and the ability to trade onchain through our regulated ATS,” Securitize co-founder and CEO Carlos Domingo said.
Securitize, also known for issuing BlackRock’s $4 billion tokenized money market fund, was an early mover in this sector, creating tokens of publicly-traded crypto wallet provider Exodus (EXOD) shares on Algorand in 2021.
SharpLink Gaming (SBET), another ETH treasury firm, also unveiled plans to introduce its stock on Ethereum with tokenization firm Superstate’s Opening Bell platform.
Read more: ‘Tokenization is Going to Eat the Entire Financial System’ Says Robinhood CEO
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