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Cantor, Securitize on-chain IPOs
Cantor Fitzgerald partnered with tokenization platform Securitize to develop services for blockchain-based initial public offerings (IPOs) and the issuance of tokenized securities, aiming to bridge traditional capital markets with blockchain infrastructure.
“Cantor Fitzgerald has entered into a partnership with tokenization platform Securitize”
Under the agreement, Cantor Fitzgerald will contribute its equity capital markets (ECM) expertise and trading capabilities, while Securitize will provide its infrastructure for issuing, distributing, and managing tokenized securities.
The plan is designed to help companies raise funds and issue securities on-chain while remaining fully compliant with existing IPO systems and regulatory frameworks, with the partnership described as a dual-path option for a traditional IPO or a blockchain-based issuance.
In a related framing, Securitize and Cantor said they are revamping IPOs with tokenization and blockchain technology so public companies can raise capital on-chain and issue tokenized securities while still operating within the established capital markets framework of traditional public offerings.
Market test and pricing
The partnership was announced on July 15, and the Wall Street Journal reported that Securitize shares were up about 12% Wednesday afternoon after the announcement.
Securitize began trading on the New York Stock Exchange under the ticker SECZ on July 2 after a merger with a Cantor-sponsored SPAC, and the Journal reported the stock closed its first session at $12.30, up 4.4%.
The same report said the deal was expected to raise $400 million in gross proceeds, and it described Securitize’s market value as more than $300 million represented on Avalanche at launch.
In parallel, the Wall Street Journal reported that nearly 40 firms and technology providers, including JPMorgan Chase, Goldman Sachs, BlackRock, Vanguard and the New York Stock Exchange, were taking part in a test involving securities held at DTCC, with DTCC planning a fuller launch in October after receiving SEC approval for limited tokenization services in 2025.
What changes for issuers
Securitize and Cantor said the issuer-sponsored approach would make the token represent the actual security, rather than a wrapper, SPV or synthetic exposure, with tokenization becoming part of the issuance process rather than something layered on afterward.
“the token represents the actual security (not a wrapper, SPV or synthetic exposure)”
Carlos Domingo, Co-Founder and CEO of Securitize, said, "Public companies shouldn't have to choose between access to traditional capital markets and the benefits of blockchain technology that improve how securities are issued, distributed, owned, and serviced," positioning the partnership as a way to support capital formation onchain within existing regulatory frameworks.
Pascal Bandelier, Co-CEO and Global Head of Equities at Cantor, said, "Tokenization is becoming part of mainstream capital markets, and partnering with Securitize allows us to bring the rigor of traditional equity capital markets to onchain settlement and distribution."
The LCX Exchange report described the framework as supporting both IPOs and follow-on offerings, with Securitize Markets, its SEC-registered broker-dealer affiliate, participating in the offering and settlement process while Cantor contributes equity capital markets and trading capabilities typically associated with public offerings.