Securitize launches tokenized trading of 12 US stocks including Apple and Nvidia on Solana

Securitize (NYSE: SECZ) on Oct. 8 launched Securitize Stocks, tokens representing 12 US equities including Apple, Microsoft, Nvidia and Tesla, for trading on the Solana blockchain, the tokenization firm said in a press release. Trades settle in the dollar-backed stablecoin USDC.

From Apple to Strategy: the first 12 tickers

The initial lineup is Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Alphabet (GOOG), Tesla (TSLA), Meta (META), Amazon (AMZN), Netflix (NFLX), Circle (CRCL), Strategy (MSTR), Palantir (PLTR) and SPCX, a ticker the release lists without naming the company. Trading runs through Securitize's existing Solana PropAMM, an automated quoting system, with US trading firm Jump Trading serving as market maker to supply buy and sell quotes.

Trading will initially be available during extended hours, with plans to move toward 24/7 availability. The company said it also expects the tokens to trade on a 24/7 digital venue being developed by the New York Stock Exchange (NYSE) and on OKXICE, a tokenized securities venue being built by OKX and NYSE parent Intercontinental Exchange (ICE). Neither venue has opened, and both require regulatory approval.

More than a price-tracking wrapper

Securitize said each token is a security entitlement under Article 8 of the US Uniform Commercial Code (UCC). Every token is backed by one actual share, and holders receive dividends and, where the share class carries them, voting rights. "Shares backing Securitize Stocks will not be lent out," the company said. Where an issuer supports tokenization, holders can convert their tokens into shares recorded on that company's register.

"Tokenized stocks should give investors more than a price on a wrapper that tracks a stock and is only offered offshore"

Carlos Domingo, Chairman and CEO, Securitize

Domingo said tokenized stocks need to offer more than an offshore-only wrapper that simply tracks a share price.

The release also said token holders are not registered shareholders of the issuer unless they convert, and the 12 issuers have not sponsored or endorsed the product. Securitize Markets, a FINRA member, offers the tokens in the US, and Securitize's European entity handles the EU. RQD CEO Michael Sanocki said the firm will support Securitize with clearing, custody and settlement infrastructure.

Ripple Prime backs the launch, Aave's founder eyes collateral use

Ripple Prime, Ripple's institutional prime brokerage unit, plans to support the launch and explore adding the tokens to its institutional trading services. Ripple Prime President Noel Kimmel called the launch "an important next step." Stani Kulechov, founder of decentralized lending service Aave, also pointed in the release to using tokenized stocks as lending collateral. Neither gave a date for an actual integration. Nick Ducoff, GM, Institutional at the Solana Foundation, said the product shows what becomes possible when real securities and shareholder rights are combined.

South Korea is not among the named jurisdictions

According to the release, the product is available to eligible investors in the US, the EU and other permitted jurisdictions. South Korea is not named. Two days earlier, on Oct. 6, Securitize signed an agreement in Korea with LG CNS. According to Korean outlet Nocut News, LG CNS that day unveiled KITL, a blockchain platform for financial institutions, and signed agreements with five firms including Circle and Chainlink, agreeing to jointly develop fund and bond tokenization solutions with Securitize.

Solana (SOL) traded at 151,200 won on Upbit's Korean won market at 7:30 a.m. KST on Oct. 9, down 4.7% from a day earlier. At the same time it was at $110.15 on Binance (down 5.1% over 24 hours), and the kimchi premium (the gap between prices on Korean exchanges and global markets) stood at about 2.5% on Upbit. USDC, the settlement currency, traded at 1,372 won on Upbit.