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Transfer Agents Ask SEC to Restrict Third-Party Tokenized Stock Products
The Securities Transfer Association asked the SEC to give regulatory preference to company-authorized tokenized shares. The group warned that third-party synthetic tokens create investor and custody risks. CoinDesk reported the July 13 letter and related industry statements.
Jul 13, 9:45 AM·1m read1 source
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The Securities Transfer Association sent a letter to the U.S. Securities and Exchange Commission urging preferential regulatory treatment for issuer-sponsored tokenized securities over third-party tokens. The group stated that only tokens authorized by the issuer and recorded in official shareholder registers should qualify as actual shares.
It asked the SEC to limit any innovation exemptions, pilot programs or permanent frameworks to issuer-sponsored models and to require issuer consent before platforms market products as tokenized shares of public companies. Ann Bowering, CEO of issuer services at Computershare North America, said listed company clients have raised concerns over wrapper-style products that sit outside issuers' records, governance and communication channels.
Fiona Chalmers, global CEO of issuer services at Computershare, said innovation and market integrity must move together with clear distinctions between issuer-sponsored tokenized securities and wrapper products.
Dan Kramer, CEO of transfer agent Equiniti, said a token not authorized by the issuer and recorded through its transfer agent is a synthetic instrument that leaves investors exposed. The STA also called for modernizing the Direct Registration System to reduce friction for issuer-sponsored tokenization. Computershare serves as transfer agent for more than half of S&P 500 companies.
The Depository Trust & Clearing Corporation processed $4.7 quadrillion in securities transactions in 2025, while its subsidiary provides custody services to over $100 trillion in securities. The tokenized stock market is currently valued at roughly $2 billion and is dominated by third-party synthetic models such as those from Ondo Finance and Kraken's xStocks.
