FINRA green lights Securitize for tokenized IPO underwriting and custody
Securitize is the first firm to receive FINRA approval to custody tokenized securities and underwrite onchain IPOs and secondary offerings.
The Financial Industry Regulatory Authority (FINRA) has granted Securitize approval to custody tokenized securities and underwrite blockchain-based initial public offerings and secondary offerings. This milestone makes Securitize the first firm to receive such comprehensive regulatory approval for tokenized securities operations, enabling the company to serve as both custodian and underwriter for onchain capital markets activities.
Securitize has been operating in the digital securities space for several years, focusing on tokenizing real-world assets and facilitating compliant blockchain-based securities transactions. The company previously required partnerships with traditional broker-dealers to handle certain aspects of securities offerings. FINRA's approval eliminates these intermediary requirements, allowing Securitize to provide end-to-end services for tokenized securities transactions while maintaining full regulatory compliance.
This regulatory green light represents a significant step toward mainstream adoption of tokenized securities and blockchain-based capital markets infrastructure. The approval could encourage other firms to pursue similar regulatory pathways and may accelerate institutional interest in tokenized offerings. By legitimizing onchain IPOs and secondary trading through established regulatory frameworks, FINRA's decision bridges traditional securities regulations with emerging blockchain technology.
The approval positions Securitize to capitalize on growing institutional demand for digital asset exposure while maintaining regulatory compliance. Market participants will likely monitor how successfully the company executes its expanded mandate and whether additional firms receive similar regulatory approvals in the coming months.
Source: The Block
