Bullish, Alpaca, Apex Fintech and DriveWealth Form Coalition for Tokenized Stocks

Bullish, Equiniti, Alpaca, Apex Fintech Solutions, and DriveWealth have formed a coalition called Issuer Sponsored Token to develop standards for tokenized stocks linked to official shareholder registries. The group members will work on technical standards, settlements, asset custody, and mechanisms for transferring securities between traditional infrastructure and blockchain networks. The main goal of the coalition is to preserve the rights of holders of tokenized stocks, including voting and receiving dividends. The initiative arose amid disputes over the differences between tokenized stocks and synthetic products. The coalition emphasizes a model where the tokenized stock is tied to the official shareholder registry, which should ensure investors' basic ownership rights. Alpaca plans to work on the compatibility of traditional securities and on-chain markets through its Instant Tokenization Network. Apex Fintech Solutions believes that the coalition will help develop standards for the interaction of tokenized markets with existing systems. The coalition's work began after the U.S. Securities and Exchange Commission granted an exception for limited on-chain trading of registered stocks.

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