Securitize Makes Case for Tokenized Stocks in Wall Street Journal Ad

Securitize used a full-page ad in The Wall Street Journal on Wednesday, Oct. 28, to argue that tokenized stocks can fit within U.S. securities rules as the SEC sets conditions for some venues.

The placement followed an Oct. 24-25 weekend ad under the name Common Sense Leadership Fund, which urged public-company executives to oppose third-party tokenized stock trading. That ad pointed to risks including price gaps and obscured ownership. Securitize CEO Carlos Domingo had criticized the earlier ad in an Oct. 26 post, arguing that it blurred token structure with the venues where tokens trade; he explained that distinction in his response to the earlier ad.

Securitize’s own product is part of that debate. Securitize introduced entitlements tied to 12 U.S. stocks on Oct. 8, with one underlying share backing each entitlement and initial trading on Solana via its registered broker-dealer platform. Securitize disclosed that the underlying companies had not sponsored or endorsed Securitize Stocks, and said holders would not be registered shareholders unless they converted their entitlements.

That structure links a digital entitlement to a share but does not make the holder a registered shareholder on its own. The distinction is central to the discussion of third-party tokens: Securitize describes a share-backed product, while the SEC order addresses what a venue must do before offering a tokenized stock issued by another party.

In its Sept. 17 order, the SEC granted some tokenized-securities venues and liquidity providers temporary relief subject to conditions. Under its process for third-party tokenized stocks, a qualifying venue must give the issuer written notice before offering the token under the exemption. Trading must wait at least 30 calendar days after the issuer receives that notice.

A timely written objection by the issuer bars that stock from trading on the venue that sent the notice. The process is venue-specific, so an objection does not automatically stop a token from being offered at every other venue. The order is not a blanket approval for tokenized stock products, and filing a notice does not establish that a venue meets the exemption’s requirements.

Venues must qualify for the relief and complete the issuer-notice process before offering a covered third-party token. The process gives issuers time to object before trading starts on that venue.