Key points to remember:
- Securitize Markets has received expanded authorizations from FINRA for the custody, settlement, subscription and distribution of tokenized securities.
- Transactions can now be settled on-chain against stable coins within a regulated broker-dealer framework.
- Executives said the approval strengthens the infrastructure for token stock offerings and IPO processes.
Securitize Markets expands custody of tokenized securities
Securitize, a leading tokenization platform, announced on May 4, 2026 that its brokerage subsidiary, Securitize Markets LLC, has received expanded approval from the Financial Industry Regulatory Authority (FINRA). The approval expands the broker’s permissions to regulated group custody, settlement, subscription and sale permissions for tokenized securities, expanding the firm’s role in on-chain capital markets.
The main change concerns operational control. Securitization marketplaces can now hold tokenized securities within the broker while transactions are settled against on-chain stablecoins. This structure is designed to reduce the number of separate accounts, parties and manual steps involved in completing digital securities transactions. Securitization said:
“Through this process, Securitize Markets is now the first company to be authorized to hold tokenized securities with a regular broker, allowing it to facilitate atomic swaps and clear and settle transactions between tokenized securities and on-chain stablecoins.”
“The approval also allows Securitize Markets to be an underwriter and sales group participant for initial and secondary tokenized securities offerings,” the company added. The approval also gives Securitize Markets a larger role in offerings, not just secondary market activity. Carlos Domingo, co-founder and CEO of Securitize, said: “Bringing custody of tokenized securities into the broker-dealer is a fundamental unlock. It allows us to facilitate atomic settlement transactions between securities and cash equivalents within our ATS broker-dealer, eliminating the need for fragmented processes and allowing markets to operate with the speed and efficiency of blockchain infrastructure in a regulated environment.”
FINRA Approval Strengthens Onchain’s IPO Infrastructure
FINRA authorized the expansion through the Continuing Membership Application process, the route broker-dealers use to add major capabilities or new lines of business. The result is a broader set of permissions for securitizing markets throughout the lifecycle of tokenized securities. Securitization noted:
“This milestone represents a major advancement for regulated digital asset markets, as it enables real-time on-chain settlement in a fully regulated broker-dealer framework and enhances Securitize’s trading and distribution capabilities for tokenized securities.”
Previously, these transactions required separate intermediaries and accounts before being finalized. By shifting custody and settlement to the broker, Securitize Markets can create a more direct path for tokenized securities and stablecoin payments.
For companies exploring on-chain equity issuance, the expanded permissions add support around initial public offering infrastructure and secondary offerings. Brett Redfearn, President of Securitize, said: “The approvals from the underwriting and sales groups significantly enhance our capabilities to assist in the tokenization of securities during the IPO process. The case for tokenizing the shares of new and existing publicly traded companies continues to become more and more compelling. We are excited about what comes next.” The broader takeaway is a more comprehensive regulated framework, where custody, distribution, trading and settlement can operate within a single broker-dealer model.
