Securitize announced that its subsidiary Securitize Markets has gained expanded approvals from the Financial Industry Regulatory Authority (FINRA). This marks the first time a standard broker-dealer has been authorized to hold custody of tokenized securities, enabling atomic settlements and on-chain transactions between these assets and stablecoins.
The approvals, secured through FINRA’s Continuing Membership Application process, allow Securitize Markets—already operating an SEC-regulated alternative trading system (ATS)—to handle custody, clearing, and settlement internally.
Transactions can now occur in a single, simultaneous on-chain step, eliminating the multi-party handoffs and delays common in traditional markets.
Additionally, the firm can now serve as an underwriter and participate in selling groups for both primary and secondary offerings of tokenized securities.
This development underscores why tokenized securities—digital representations of traditional assets like stocks, bonds, or funds recorded on blockchain—are rapidly emerging as a cornerstone of modern finance.
By combining blockchain’s transparency and programmability with regulatory compliance, tokenization addresses longstanding inefficiencies: multi-day settlement cycles (such as T+2), high intermediary costs, and limited accessibility for smaller investors.
Real-world assets (RWAs) are seeing steady growth, with tokenized markets surpassing $26 billion globally and rising sharply, driven by institutional demand for faster liquidity and fractional ownership.
Tokenized securities could unlock trillions in currently illiquid assets, enable 24/7 global trading, and reduce counterparty risk through atomic swaps that ensure delivery-versus-payment in real time.
Industry forecasts suggest tokenization may dominate capital market issuance and trading by 2030, as major banks like Deutsche Bank have projected. For public companies, the case for issuing tokenized shares is strengthening, promising lower costs and broader investor participation.
The broader financial services sector stands to benefit immensely—and face disruption.
Broker-dealers, exchanges, and custodians could see operational costs plummet while gaining new tools for efficiency and innovation.
Yet this shift pressures legacy infrastructure, forcing incumbents to adapt or partner with blockchain-native platforms. Tokenization fosters greater transparency and inclusion but requires robust regulation to manage risks like liquidity mismatches or operational fragilities, as noted in financial stability analyses.
Securitize’s edge comes amid growing competition in the RWA space. Rivals such as tZERO previously secured custody approvals but only through specialized purpose-built broker-dealers, whereas Securitize integrates these functions into a conventional framework for end-to-end efficiency.
Other key players include Polymath, Tokeny, Centrifuge, and Ondo Finance, which focus on issuance and compliance but lack this full regulated custody-and-settlement stack.
Industry professionals hail such milestones as foundational.
Securitize CEO Carlos Domingo described the custody integration as a “foundational unlock” that brings blockchain speed into a regulated environment, while President Brett Redfearn highlighted its potential to accelerate tokenized IPOs for public firms.
Analysts across the sector mostly view regulated on-chain infrastructure as essential for scaling tokenized finance responsibly. As tokenization matures, developments like Securitize’s approval signal a maturing market where blockchain and traditional finance converge, potentially reshaping how capital is raised, traded, and held.