FINRA has granted the tokenization firm Securitize approval to custody tokenized securities as part of its regular broker dealer authorization. Securitize Markets already operates an alternative trading system (ATS) and a sister company is a transfer agent. Other companies such as tZERO had approval to provide custody, but only through a special purpose broker dealer, whereas the latest approval allows custody, trading and settlement to operate within a single broker dealer.
The authorization enables atomic settlement, where the exchange of tokenized securities for stablecoins happens in a single simultaneous transaction on chain. Additionally, Securitize can now underwrite and help distribute new tokenized securities offerings. Hence, the company can complete full end to end transactions in both the primary and secondary markets, collapsing the need for additional intermediaries.
“Bringing custody of tokenized securities into the broker-dealer is a foundational unlock,” said Carlos Domingo, Co-Founder and CEO of Securitize. “It allows us to facilitate atomic settlement transactions between securities and cash equivalents within our broker-dealer ATS, eliminating the need for fragmented processes.”
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