FG Nexus (FGNX), a digital asset financing company focused on Ethereum, said on Thursday that the tokenization specialist company has securitized it so that investors can hold a common preferred stock as tokens for the Ethereum blockchain.
After securitization tokenization treatment, shareholders choose to convert common stock (FGNX) into Ethereum-based tokens, giving them the same legal rights as traditional stocks. The company will also tokenize permanent preferred stocks (FGNXPs) that pay regular dividends and become the first US exchange-listed dividend capital to move fully into Crypto Rails.
The purpose of this process is to streamline the way public stocks are owned and traded using blockchain rails, while being subject to the same regulations and rights as regular securities. Tokenized stocks are tracked on the blockchain and transferred via Securitize’s SEC Registered Broker Dealer and Alternative Trading System (ATS) for instant settlement.
Maja Vujinovic, CEO of FG Nexus’ digital assets, said: “By tokenizing stocks, we are embracing blockchain technology to further strengthen our shareholders’ experience while maintaining the highest standards of regulatory compliance.”
Shifts to on-chain
This move comes as tokenization of financial instruments such as stocks, bonds and capital is gaining momentum across the crypto market.
A wide range of tokenized equity offerings that have debuted over the past few months, including Robinhood, Gemini, the global market of Ond Finance, and XStocks by Kraken and Backed Finance, have made the debut token versions of the largest public companies and ETFs. Some companies, like FG Nexus, have opted to native tokenization. This is a structure that gives token holders the same rights as regular stocks.
“The project with FG Nexus is expected to allow US investors to retain substantial inventory rather than synthetic wrappers. It has the ability to exchange on-chain through immediate settlements, automated compliance and regulated ATS.”
Also known for issuing BlackRock’s $4 billion tokenized money market funds, Securitize was the early invoker of the sector, creating an Exodus (EXOD) shares of the Crypto Wallet Provider, published on Algorand in 2021.
Another ETH financing company, Sharplink Gaming (SBET), has also announced plans to use the opening bell platform of tokenization company Superstate to introduce inventory to Ethereum.
Read more: “Tokenization is trying to eat the whole financial system,” says CEO Robinhood
