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Securitize will become NYSE’s first digital transfer agent, which allows it to create shares for stocks and exchange-traded funds as digital tokens on a blockchain, the distributed ledger technology behind bitcoin and other cryptocurrencies. The two companies will design a digital transfer agent program, including a set of standards for other transfer agents to issue and manage stocks as blockchain tokens in a compliant way.
“Most of these tokenized equities efforts today, they’re not really tokenizing the equity. They’re creating derivatives or price trackers,” said Carlos Domingo, co-founder and chief executive of Securitize. “So this is about really working with the issuers to do native tokenization.”
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