Wall Street’s Blockchain Pivot: Cantor Fitzgerald and Securitize Target Tokenized IPOs

A major movement is underway to redesign the U.S. equities market by issuing shares as digital tokens that can be traded 24/7 with instant clearing and settlement. Wall Street giant Cantor Fitzgerald has announced a strategic partnership with Securitize to assist companies in issuing stock on the blockchain during their initial public offerings (IPOs).

Moving From Synthetic Wrappers to Native Blockchain Assets

The current market landscape relies heavily on the "wrapper model" utilized by firms like Robinhood and Kraken. In this model, blocks of stock are held in a special purpose vehicle (SPV), and synthetic tokens corresponding to those shares are issued. This approach remains controversial because it often involves creating blockchain versions of stocks like Tesla or Apple without the direct involvement of the companies themselves.

In contrast, the model championed by Securitize offers several key advantages:

■Companies maintain direct control over the tokenized shares they issue.

■The process is "blockchain-native," meaning the company participates directly in the issuance.

■It offers a significantly higher level of regulatory compliance compared to synthetic models.

A New Era for Institutional Financing

Cantor Fitzgerald's decision leverages its deep expertise in the crypto ecosystem, including its role as a custodian for the reserves of Tether, the world’s largest stablecoin issuer. Ben Boehmke, Head of Strategies for Equities at Cantor, anticipates that an increasing number of companies seeking to go public will be led by crypto-native founders eager to utilize blockchain technology.

Key strategic projections include:

■Offering 5% to 10% of an IPO in tokenized form to tap into thriving liquidity pools.

■Digitally native hedge funds requesting specific "sleeves" of an IPO in tokenized format.

■Expanding the scope beyond IPOs to include follow-on offerings via blockchain.

Securitize COO Billy Miller noted that as a full regulatory regime is established, this model will gain significant momentum. He suggested that major tech executives at firms like Apple are increasingly aware of unregulated synthetic trading and may eventually seek to embrace regulated, blockchain-native alternatives.

The integration of blockchain-based assets into financial markets is not merely a change in payment methods; it is a turning point where computational power and data transmission speeds reshape financial architecture. The proliferation of such "native" models will trigger technological demand from high-frequency trading (HFT) infrastructures to massive data centers and semiconductor requirements. As the financial system digitizes, the dependency on hardware and infrastructure capable of managing this unprecedented transaction velocity will become critical.