CZ predicts IPOs will shift to blockchain as tokenized securities infrastructure expands

Binance founder Changpeng “CZ” Zhao said on September 7 that initial public offerings will eventually move on‑chain. He did not give a timeline or identify a specific issuer, but pointed to the expanding infrastructure for tokenized securities.

Current scale of tokenized equities

Data from RWA.xyz shows about $2.9 billion of tokenized stocks are on‑chain, a rise of roughly 14 % from the previous month.

European milestone: ST Group’s fully tokenized IPO

In April, French aerospace and defense supplier ST Group completed what Clifford Chance called the world’s first fully tokenized IPO. The company raised €2.07 million by selling 113,525 shares at €18.25 each through the Paris‑based Lightning Stock Exchange (Lise) under the EU’s Distributed Ledger Technology Pilot Regime. Investors received regulated shares, not synthetic tokens.

U.S. exchange pilots

The SEC approved Nasdaq’s tokenized‑securities pilot on March 18, allowing eligible participants to trade tokenized versions of selected Russell 1000 securities and index‑linked ETFs on the same order book as conventional shares. The NYSE filed a similar rule change on April 9, establishing a framework for tokenized securities to trade alongside regular shares under a DTC pilot. Live production tests involving about 40 firms were conducted on July 15, with a broader service launch expected in October 2026.

Regulatory perspective

SEC staff clarified that tokenizing securities does not change registration, disclosure, or investor‑protection requirements. The agency distinguishes issuer‑backed token structures from third‑party‑sponsored tokens, noting that ownership rights, voting, and dividend entitlements may differ.

Infrastructure development

Companies such as Cantor Fitzgerald and Securitize are building regulated blockchain platforms to support IPOs and follow‑on offerings while retaining traditional underwriting and compliance processes. No issuer has yet been announced for these systems.

Challenges and next steps

While blockchain settlement could enable fractional shares, programmable compliance, and extended trading hours, it does not eliminate the need for underwriters, auditors, lawyers, and transfer agents. Liquidity, market surveillance, and cash settlement remain critical concerns. Upcoming milestones include DTCC’s October launch, further SEC decisions, and the first issuer to use the Cantor‑Securitize offering platform.