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Bullish, Alpaca, and Apex Fintech Form Coalition to Promote Tokenized Stocks

(8 days ago) · 1 source · Summarized by CryptoBipto

Bullish, Alpaca, and Apex Fintech have announced a coalition aimed at advancing issuer-backed tokenized stocks. The initiative seeks to bring traditional equities onto blockchain infrastructure through tokens that are backed directly by the issuing companies. The coalition reportedly aims to establish standards and infrastructure for this emerging asset class.

WHY IT MATTERS

Think of tokenized stocks like digital versions of company shares that live on a blockchain — the same technology that powers cryptocurrencies. Right now, if you buy a stock, it goes through a complex system of brokers, clearinghouses, and registries. Tokenization could simplify that process by recording ownership directly on a blockchain, potentially making trading faster and more accessible. The term 'issuer-backed' means the tokens would be supported directly by the companies whose shares they represent, rather than being created independently by a third party. This coalition is notable because it combines companies from both the crypto world and traditional finance, which suggests growing interest in merging these two systems. However, significant regulatory and technical questions remain unresolved.

Tokenized stocks are digital representations of traditional equity shares that exist on a blockchain. Unlike synthetic versions or derivatives, issuer-backed tokenized stocks are meant to be directly tied to the actual shares of a company, which could provide holders with the same rights as traditional shareholders, though the legal and regulatory frameworks for this remain evolving.

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  • coindesk.com

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