The initiative is part of a broader push to use blockchain technology to expand access to capital markets.

Tokenization — the process of creating blockchain-based representations of traditional assets — has become one of the fastest-growing areas of digital assets. The sector has expanded beyond cryptocurrencies into Treasury funds, private credit, money-market products and, increasingly, equities.

Supporters argue tokenization can make assets easier to access, transfer and trade across jurisdictions. For equities, the technology could help remove some of the geographic and brokerage barriers that have historically limited access to IPOs and foreign-listed stocks.

Still, pre-IPO investing carries risks. IPO allocations are often oversubscribed and not guaranteed, offering prices can change during the book-building process and newly listed stocks frequently experience sharp price swings once public trading begins.

The firm will only offer IPOs where it has secured allocations for investors, a Payward spokesperson told CoinDesk.

Payward said its xStocks framework currently supports tokenized equities backed one-for-one by underlying shares held in custody. The company said the framework has processed more than $30 billion in transaction volume and over $6 billion in onchain settlements across more than 125,000 holders.

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U.S. crypto exchange Coinbase is also said to be looking into the possibility of participating in the new stablecoin platform.

What to know:

  • Stablecoins are a focal point for the large card networks, with Stripe acquiring Bridge in 2024 and Mastercard buying BVNK earlier this year.
  • Late last year, Coinbase announced a white-label stablecoin service, as well as the Coinbase Business service for stablecoin payments.

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