Securities On-Chain: native tokenization revolutionizes digital securities
Securities On-Chain represents today the central theme in financial evolution, redefining the concept of ownership and management of digital securities thanks to native tokenization. According to Carlos Domingo, CEO of Securitize, the true transformation lies in the possibility of creating securities that originate directly on blockchain, ensuring transparency, security, and compliance with regulations.
The fundamental difference: native tokenization in On-Chain Securities
The CEO of Securitize emphasized that only native tokenization allows blockchain technology to express its maximum potential when applied to securities on-chain. In this model, the token represents the security in its entirety, ensuring investors the same rights and benefits they would have by purchasing the asset through traditional means.
Native tokenization, for example on Ethereum, allows enjoying voting rights, participating in the redistribution of dividends, and benefiting from share ownership through the blockchain network. This approach eliminates counterparty risks, reduces fragmentation, and offers a secure and transparent mode of transfer and exchange.
Experiments and risks: confusion and regulation
In recent months, the debate on tokenization has intensified, especially due to the experiments of some companies that have started to propose tokens “based” on financial instruments without a real connection to the underlying asset. As a result, confusion among investors is growing, and concerns from financial authorities are increasing.
The SEC (Securities Exchange Commission) has expressed concern: tokenization projects that do not respect the authentic identity of securities risk confusing the market. SEC Commissioner Hester Peirce reminded that the use of blockchain does not provide any exemption from existing regulations. On the contrary, tokenized securities remain regulated securities that do not alter the nature of the asset or the requirements for the investor.
The BlackRock case and the BUIDL fund: an example of on-chain securities
A significant example in the landscape of securities on-chain comes from BlackRock. The financial giant, through its Institutional Digital Liquidity Fund (BUIDL) and the collaboration with Securitize, has launched one of the first true native tokenization solutions.
The BUIDL fund is managed, administered, and recorded directly on the blockchain, not through traditional databases held by transfer agents. This implementation concretely demonstrates how it is possible to digitize securities without compromises: the token represents 100% of the security and allows for effective, verifiable, and transferable ownership via a public network.
Practical examples: Exodus, Robinhood and Kraken
In 2022, the platform Securitize hosted the first digital security of the company Exodus, traded as a native token. The success of this initiative fueled interest in tokenization, leading in 2024 to other significant launches: for example, the tokens of Robinhood on Ethereum layer-2 Arbitrum and of Kraken on Solana and other networks.
However, the expansion of these products has not been free from controversies. For example, Robinhood initiated the trading of tokens “based” on stocks such as those of OpenAI and SpaceX, but such solutions do not represent actual ownership of shares in the companies involved. OpenAI, in fact, publicly stated that such tokens do not correspond to real shares of the company, fueling doubts about the validity of some issuances.
Regulatory challenges and the role of oversight bodies in on-chain securities
The context in which securities on-chain are placed remains characterized by strong regulatory pressures. Regulatory authorities, in fact, closely monitor the phenomenon: the SEC reiterates that tokenization does not exempt from existing law, and every project must comply with obligations regarding transparency, accountability, and investor protection.
This position helps to outline clear boundaries: the blockchain is a powerful technological tool, but the essence of the asset remains unchanged and subject to the rules that already govern the financial market. Consequently, any attempt to circumvent regulation risks failing and generating negative consequences for both the promoters and the end users.
Native tokenization: the only authentic way for on-chain securities
The consensus among experts is now clear: securities on-chain find real fulfillment only in native tokenization. This approach represents the synthesis between technological advancement and compliance with financial regulations. The creation of securities that are born and live entirely on the blockchain allows for evident benefits for investors, issuers, and the market as a whole.
- Transparency: every transaction is public and verifiable by anyone on the blockchain.
- Security: counterparty risks are eliminated, as well as those of centralized manipulation.
- Efficiency: the management and exchange of securities become faster and more global.
Furthermore, the tokenizzazione nativa avoids data fragmentation and reduces compliance and administration costs compared to models based on proprietary archives, promoting the evolution of the entire financial sector.
Securities On-Chain: a transformation destined to consolidate
The affirmation of securities on-chain pushes the market towards new standards of digital innovation and regulatory compliance. The path outlined by pioneering projects like those of BlackRock and Securitize marks a turning point: only native tokenization guarantees transparency, control, and real ownership of the asset.
Looking to the future, it is likely that the integration between blockchain and the financial market will produce even more efficient models, always in compliance with industry regulations. Investors attentive to the theme are invited to follow the developments, carefully evaluating the offers that are truly compliant and innovative.
Native tokenizzazione establishes itself as the reference model for those who wish to combine the opportunities offered by new technologies with the solidity and regulatory clarity required by financial instruments.