Securitize Markets secured expanded approval from the Financial Industry Regulatory Authority to handle tokenized securities. The firm can now custody, settle, underwrite, and distribute these digital assets. This clearance also permits on-chain settlement directly against stablecoins.
Expanded Permissions
FINRA's updated authorization covers four core functions for tokenized securities. Securitize can hold client assets in custody, a critical role given the blockchain-based nature of these instruments. The firm may now settle transactions, finalizing trades without traditional intermediaries. It also cleared the way for Securitize to underwrite new tokenized securities offerings and distribute them to investors. Before this approval, the company operated under narrower permissions that didn’t include full settlement capabilities.
On-Chain Settlement Mechanics
Transactions will settle directly on blockchain networks using stablecoins as payment. This means when someone buys tokenized securities through Securitize, the transfer of ownership and payment happens in a single step on-chain. Stablecoins act as the settlement medium, eliminating the need for fiat currency conversions or legacy clearing systems. The process cuts what normally takes days in traditional markets down to seconds during trading hours. But it only applies to assets that meet FINRA's existing securities standards.
Immediate Operational Shift
Securitize doesn’t need to file additional paperwork to start these operations. The approval is effective immediately for the activities covered. Firms using Securitize’s platform can now trade tokenized securities with on-chain settlement during normal market hours. This changes how broker-dealers interact with digital asset platforms—they’ll process trades through Securitize’s system instead of separate settlement layers. It’s the first time FINRA has allowed a single entity to handle all four functions for tokenized securities end-to-end.
Unresolved Details
Which stablecoins will be used for settlement remains unconfirmed. The approval notice didn’t specify eligible stablecoins or minimum requirements for their reserves. Securitize hasn’t released a list of accepted stablecoins for these transactions. The firm also hasn’t announced launch dates for specific tokenized securities products under the new permissions. Regulators haven’t detailed how they’ll monitor settlement failures or fraud in this new framework.
