Bullish, Alpaca Launch Coalition for Tokenized Stocks
Bullish, Alpaca, Apex Fintech, Equiniti and DriveWealth have teamed up to set standards for issuer-backed tokenized stocks that carry real shareholder rights.
Buy a “stock token” today and there is a good chance you do not actually own the stock. Many of these products are synthetic or wrapped: they mirror the share price but give you no vote, no dividend and no say in corporate actions. Five firms now want to fix that.
Bullish, Equiniti, Alpaca, Apex Fintech Solutions and DriveWealth have launched the Issuer Sponsored Token Coalition, a group that will develop standards for tokenized stocks.
The coalition's approach
The group's model keeps each tokenized share linked directly to the issuing company's shareholder register. As long as that link exists, the token holder is a genuine shareholder. They can use their voting rights, receive dividends and take part in corporate actions like anyone holding the stock through a broker.
Founding members stress getting the design right early. “The architecture we establish now matters and that is why we are bringing together this group of leading firms to chart the course,” said Tom Farley, CEO of Bullish. For Alpaca's Arush Sehgal, doing it well means “preserving shareholder rights and ensuring onchain markets remain connected.”
What set it off
The coalition follows a recent exemption from the US SEC. Under certain conditions, it permits limited onchain trading of US-listed shares, which gives firms a legal route to build these products.
The launch also fits a wider pattern. In the same week, ARK tokenized its venture fund and Blockchain.com struck a deal with the NYSE, two more signs of how quickly tokenization is moving into mainstream finance.
The lesson for Indian investors
In India, you can already buy US stocks through platforms that use the RBI's Liberalised Remittance Scheme (LRS). Tokenized US shares are a different matter: they are not yet a regulated product here.
Wherever you invest, one question matters most before buying any stock token. Does it give you real ownership, or just exposure to the price? The answer decides whether you get dividends and voting rights, and what happens to your holding if the token issuer collapses.
FAQ
What is the Issuer Sponsored Token Coalition?
It is a coalition of Bullish, Equiniti, Alpaca, Apex Fintech Solutions and DriveWealth. The members are building standards for tokenized stocks that remain tied to the issuer's shareholder register.
What is the difference between issuer-backed and synthetic tokenized stocks?
An issuer-backed token carries real shareholder rights, including votes and dividends. A synthetic token only follows the share price.
This article is AI-assisted, educational and general in nature. It is not financial advice and never a guarantee of profit. Every trade is at your own risk on your own exchange. See our risk disclosure and editorial policy.
