Financial Firms Formed Tokenized Security Coalition
The group aims to develop standards for trading tokenized U.S. equities following a new five-year regulatory exemption.
Updated on Sept. 24, 2026 in Investing
Live Poll
Do you trust that tokenized shares offer the same ownership rights as traditional stocks?
Bullish and Equiniti have launched the Issuer Sponsored Token Coalition to establish infrastructure for tokenized securities. The effort follows a September 17, 2026, SEC Innovation Exemption permitting limited onchain trading of U.S.-listed equities for five years.
Why it matters
The coalition seeks to ensure tokenized assets remain interoperable with traditional capital markets while maintaining issuer-shareholder relationships. This initiative aims to scale digital security offerings as regulatory frameworks begin to accommodate onchain trading.
The SEC has granted a 5-year Innovation Exemption for onchain trading, while the broader industry shift is underscored by a $4.2 billion acquisition between founding members Bullish and Equiniti.
The players
Bullish
A digital asset exchange that provides trading services and is currently in the process of acquiring Equiniti.
Equiniti
A financial services provider specializing in shareholder services and administration that is being acquired by Bullish.
U.S. Securities and Exchange Commission
The federal agency responsible for regulating capital markets and overseeing the adoption of new trading technologies.
New York Stock Exchange
A major global stock exchange that serves as the host venue for upcoming coalition discussions.
Apex Fintech Solutions
A financial technology firm providing custody and clearing services to the investment industry.
The details
The coalition, which includes Alpaca, Apex Fintech Solutions, and DriveWealth, intends to create technical standards and market frameworks for tokenized securities. These members plan to begin product prototyping and pilots to facilitate the integration of onchain trading into the existing financial system. Stakeholders will convene at the New York Stock Exchange to discuss the future of these digital assets.
Timeline
May 2026: Bullish agreed to acquire Equiniti.
September 17, 2026: SEC issued the Innovation Exemption.
September 24, 2026: Formation of the Issuer Sponsored Token Coalition was announced.
October 27, 2026: Coalition members are scheduled to meet at the New York Stock Exchange.
January 2027: The acquisition of Equiniti is expected to close.
Money Landscape
The move marks a departure from traditional closed-loop securities trading by leveraging the SEC Innovation Exemption. It aligns with an emerging trend toward digitizing asset ownership to improve interoperability within U.S. capital markets.
While this coalition focuses on institutional infrastructure, it reflects an expanding range of digital investment options available to individual shareholders. Investors should monitor how these new tokenized standards affect future account access and asset liquidity through their financial professional.
The takeaway
The formation of this coalition suggests that tokenized securities are moving from theory toward actionable pilot programs. Readers should track upcoming industry announcements for updates on how these digital standards might eventually change the way they hold and trade assets.
Further reading
For more background on digital assets and capital market trends, visit the Investing section.
Live Poll
Do you trust that tokenized shares offer the same ownership rights as traditional stocks?
