Issuer Sponsored Token Coalition Aims to Align Tokenized Stocks with Shareholder Rights

Five major financial firms announced the formation of the Issuer Sponsored Token Coalition on September 24, 2026. The coalition’s goal is to ensure that tokenized U.S. equities represent actual ownership in the issuing company, rather than merely tracking price movements.

Why Existing Tokenized Stocks Fall Short

Current tokenized‑stock models typically involve a broker holding real shares in custody and minting a 1:1 token. While the token can provide economic exposure and sometimes dividends, the holder is often not recorded on the company’s official shareholder register, leaving voting rights and other corporate actions in a legal gray area.

Issuer‑Sponsored Tokenization Model

The coalition proposes a model where the public company and its transfer agent are directly involved, tying the token to the official shareholder book. This would allow voting, proxies, stock splits and other shareholder privileges to travel with the token on‑chain.

Key Players and Their Roles

• Equiniti – Serves nearly 3,000 issuers and over 20 million shareholders, providing a bridge between corporate records and blockchain.
• Alpaca – Reports roughly 94 % coverage of tokenized U.S. stocks and ETFs, with more than $1.5 billion of underlying shares held in custody.
• Apex Fintech Solutions – Supplies clearing and broker‑dealer infrastructure.
• Drivewealth – Provides U.S. stock access to global investing platforms.
• Bullish – Crypto exchange that agreed to acquire Equiniti in May 2026.

Regulatory Context

On September 17, 2026, the SEC issued a five‑year Innovation Exemption for Tokenized Securities Venues, allowing permissioned automated market makers and liquidity pools for tokenized National Market System stocks. The exemption requires qualifying tokens to confer the same rights and privileges as traditional shares.

Next Steps

The coalition plans to address technical standards, settlement, custody and interoperability between traditional market infrastructure and blockchains. Members will meet with public‑company issuers at the New York Stock Exchange on October 27, 2026 to discuss practical implementation.