Ethereum-focused digitally asset contact company FG Nexus (FGNX) said on Thursday that it has tapped tokenization specialist company Securitize to let investors have its joint and preferred shares like tokens at Ethereum Blockchain.
Following Securitize’s tokenization processing, shareholders can choose to convert their joint share (FGNX) to Ethereum-based tokens, giving them the same legal rights as traditional shares. The company will also tokenize its eternal preferred stock (FGNXP), which pays regular dividends, making it the first US listed dividend to transition to the transition to the crypto rails.
The process aims to streamline how public shares are owned and traded using blockchain rails while subject to the same rules and rights as ordinary securities. The tokenized shares will be settled in almost immediately, the track of blockchain and transferred through Securitizes SEC-registered broker dealers and alternative trading system (ATS).
“Tokenization quickly changes financial markets through increased efficiency and improved investor access,” said Maja Vujinovic, CEO of Digital Assets at FG Nexus. “By tokenizing our shares, we embrace blockchain technology to further improve the shareholder experience, while at the same time the highest standards of regulatory compliance.”
Switch to onchain
The move comes as a tokenization of financial instruments, such as stocks, bonds and foundations, wins speed across crypto markets.
A wide range of tokenized stock offerings debuted in the past few months, including Robinhood, Gemini, Ondo Finance’s global markets and xstocks of Kraken and supported funding, creating token versions of the largest public traded businesses and ETFs. Some companies, such as FG Nexus, have chosen native tokenization, a structure that gives identical rights to token holders as ordinary shares.
“Our project with FG Nexus is expected to result in US investors being able to keep real stock, not a synthetic wrapping, with immediate settlement, automated compliance and the ability to act onchain through our regulated ATS,” said Securitaire co -founder and CEO Carlos Domingo.
Securitize, also known for issuing Blackrock’s $ 4 billion Tokenized Money Market Fund, was an early mover in this sector that created symbols on listed crypto -cargo provider Exodus (Exod) shares at Algorand in 2021.
Sharplink Gaming (sbet), another ETH Treasury company, also revealed plans to introduce his stock at Ethereum with Tokenization Company Superstate’s opening clock platform.
Read more: ‘Tokenization will eat the entire financial system’ says Robinhood CEO
