Investment giant Cantor Fitzgerald and cryptocurrency brokerage Securitize (SECZ) are revamping initial public offerings (IPOs) with tokenization and blockchain technology, the companies announced Wednesday.
As part of the deal, Cantor will leverage its capital markets and trading capabilities, while Securitize will provide the tokenization infrastructure used to issue, distribute and manage tokenized securities, according to a press release.
Large traditional financial players are taking rapid steps towards tokenization of capital markets. This week, the Depository Trust & Clearing Corporation (DTCC) announced new equity tokenization projects with a range of partners, including JPMorgan, Goldman Sachs, BlackRock and Vanguard.
The collaboration will enable public companies to raise capital and issue securities on-chain with improved operational efficiencies and modernized ownership records, while operating within the established capital markets framework of traditional public offerings, the companies said.
Rather than focusing on tokenized funds or secondary trading, this partnership extends blockchain infrastructure directly to IPOs and follow-on offerings, a Securitize spokesperson said in an email.
