Securitize Teases Real Stock Tokens, Touts DeFi Tie-In

Securitize criticized the recent wave of tokenized stock products, claiming they “offer exposure, not ownership.” The company said some products rely on special-purpose vehicles or offshore structures that can add counterparty risk or create pricing mismatches.

It also criticized tokenized stock products, which it said are not even compliant, since they are issued as permissionless assets without Know Your Customer (KYC) or Anti-Money Laundering (AML) controls.

Still, the company notes that traditional stock infrastructure is antiquated and needs disintermediation and rebuilding, with investors rarely holding “shares in their own name, settlement takes at least a day.”

“If tokenization is going to matter at public-market scale, it must deliver ownership, real securities and maintain investor protections.”

Securitize said its approach is built around regulated securities and compliance requirements, including controls that limit transfers to approved, or whitelisted, wallets.

Regulated shares make their way to DeFi

Securitize said it will act as the transfer agent for the shares, describing itself as registered with the US Securities and Exchange Commission. Transfer agents maintain shareholder records and process changes in ownership. By pairing that role with blockchain-based issuance, the company said the tokens would be legally recognized shares rather than a proxy claim.

Securitize downplayed faster settlement as the main selling point, saying the larger opportunity is programmability, or the ability for tokenized securities to interact with smart contracts and onchain financial applications.

It further argued that this programmability allows tokenized securities to be integrated with DeFi platforms “without compromising compliance or user protections.”

“This is not about replacing traditional finance. Its about upgrading it,” Securitize said.