Cantor and Securitize collaborate on blockchain-based IPOs

Investment giant Cantor Fitzgerald and cryptocurrency-focused broker-dealer Securitize (SECZ), are revamping initial public offerings (IPOs) with tokenization and blockchain technology, the companies said on Wednesday.

Under the agreement, Cantor will leverage its equity capital markets and trading capabilities, while Securitize will provide the tokenization infrastructure used to issue, distribute, and service tokenized securities, according to a press release.

Large traditional finance players are taking rapid steps towards the tokenization of capital markets. This week the Depository Trust & Clearing Corporation (DTCC) announced further plans to tokenize stocks with a range of partners including JPMorgan, Goldman Sachs, BlackRock and Vanguard.

The collaboration will enable public companies to raise capital and issue securities onchain with improved operational efficiency and modernized ownership records, while still operating within the established capital markets framework of traditional public offerings, the companies said.

Rather than focusing on tokenized funds or secondary trading, this partnership extends blockchain infrastructure directly into IPOs and follow-on offerings, a Securitize spokesperson said in an email.