How Does Tokenised Equity Differ From Traditional Equity Securities?
Tokenised equity refers to the process of representing ownership in a company through digital tokens recorded on a blockchain, Layer 2 or sidechain like Blockstream’s Liquid Network. Each token corresponds to a share or fraction of a share, giving investors rights similar to those associated with traditional equity, such as profit sharing or voting rights, depending on the design of the offering. By existing as digital assets on decentralised networks, tokenised equity benefits from the programmability, transparency, and the potential for near-instant settlement, as transactions are executed and recorded on a distributed ledger without reliance on multiple intermediaries. This digital representation of equity opens pathways for new forms of ownership transfer and market participation.
One of the major differences between tokenised equity and traditional securities offerings lies in accessibility, 24/7/365 markets, and transferability. Traditional equity often involves complex settlement processes, custodians, underwriters, and clearinghouses, with settlement times typically stretching over days. Tokenised equity, by contrast, can be transferred directly between parties on-chain, allowing for faster and more efficient settlement. Fractionalisation is another key distinction, for example, tokenised equity can be divided into smaller units, making it easier for investors to acquire partial ownership of shares that might otherwise be inaccessible due to high costs, thereby broadening participation in equity markets.
Access to global liquidity is also an advantage of tokenized offerings. In conventional markets, large public companies issue Global and American Depository Receipts (ADRs and GDRs) to give investors access to offshore public equity. In Europe, companies like Alphabet, Microsoft and Apple have GDRs listed on European exchanges like the London Stock Exchange (LSE). In the US, global giants, particularly from Asia, issue ADRs. ADRs issued by Asian companies like TSMC, Alibaba, HSBC, and Infosys have an estimated market capitalization of almost $2 trillion. Tokenized public equity fills the same niche, but better, providing access to investors around the planet on a 247365 basis.
Tokenised equity also enables underserved businesses in emerging markets to raise capital by connecting directly with global investors through blockchain-based platforms, bypassing traditional barriers like costly intermediaries, underdeveloped financial infrastructure, and limited access to public markets. This opens new funding channels for small and mid-sized enterprises that might otherwise struggle to secure investment.
Regulation is another area where tokenised and traditional equity diverge. Traditional equity offerings operate within well-established frameworks enforced by securities regulators, relying on intermediaries to enforce compliance and investor protections. Tokenised equity, while still usually subject to securities laws, often incorporates compliance features directly into the token itself, such as investor whitelisting, transfer restrictions or automated reporting requirements, implemented through smart contracts. This approach can reduce reliance on third parties for enforcement, while also creating new regulatory challenges in ensuring tokens comply across multiple jurisdictions.
Tokenised equity offers potential benefits in terms of liquidity and global reach. Because tokens can be traded on blockchain-based exchanges, issuers may access wider pools of investors, including those in jurisdictions where traditional market infrastructure is underdeveloped. Secondary markets for tokenised equity can also increase liquidity for shareholders, allowing smaller companies to provide trading opportunities without going public in the conventional sense. However, these advantages remain dependent on regulatory acceptance and the maturation of tokenised financial infrastructure. In contrast, traditional securitised equity remains more entrenched and recognised, but less adaptable to the innovations that blockchain technology makes possible.
Tokenise All the Things – the Potential of Tokenised Equity
The momentum behind tokenisation has accelerated rapidly in recent years, driven by advances in blockchain technology, the rise of digital asset infrastructure, and growing institutional interest. Tokenisation refers to the process of representing real-world assets, such as securities, real estate, commodities, or intellectual property, as digital tokens on a blockchain. On Bitfinex Securities for example, investors can get access to a range of tokenised assets ranging from US treasury bills to microfinance. Tokenisation allows assets to be traded, transferred, and managed with greater efficiency, transparency, and programmability. Financial institutions, from global banks to fintech startups, are investing heavily in building the frameworks for tokenised markets, with pilots and early-stage platforms already handling billions in tokenised assets. This steady growth suggests a broader shift toward digitising traditional markets, setting the stage for a new standard in how ownership and value are represented.
Over the next decade, it is increasingly likely that most markets will undergo some degree of tokenisation. Regulatory frameworks are gradually adapting, with jurisdictions such as the European Union, Singapore, and Hong Kong already developing clear rules for digital securities and tokenised assets. As blockchain-based settlement reduces costs and enables faster transactions, both issuers and investors gain efficiency advantages that traditional systems struggle to match. Additionally, programmable features, such as built-in compliance checks, automated dividends, or governance functions, make tokenised assets more adaptable than their conventional counterparts. These advantages create strong incentives for adoption, making it plausible that tokenisation will move from niche applications into mainstream global markets.
Tokenised equity stands out as one of the most transformative applications of merging digital assets with traditional markets. Equity markets are central to global finance, yet they remain burdened by legacy infrastructure, complex intermediaries, and accessibility challenges for both issuers and investors. Tokenised equity offers a way to democratise ownership, enabling fractional participation in companies that might previously have been out of reach for many investors, while also reducing costs for businesses seeking capital. For private companies, tokenisation provides access to secondary liquidity without requiring a full public listing, and for investors, it opens up a more diverse range of investment opportunities. As institutional platforms begin supporting tokenised equity alongside traditional stocks, its role in the financial ecosystem is likely to expand rapidly.
By the end of the coming decade, tokenised equity could represent a massive share of global equity markets, potentially redefining how capital formation and trading are conducted. Analysts predict that trillions of dollars in assets could migrate onto blockchain-based platforms, with equity offerings forming a substantial portion of this shift. The convergence of regulatory clarity, institutional adoption, and technological maturity will be key drivers of this transition. While challenges remain, including standardisation of platforms and global harmonisation of rules, the structural benefits of tokenisation are too significant to ignore. As a result, tokenised equity is positioned not just as a supplement to traditional equity markets, but as a core pillar of the next generation of global finance.
Tokenised Equity Offerings & Bitfinex Securities
Bitfinex Securities has emerged as a leading player in the development of tokenised securities, offering a regulated platform where businesses and investors can access a new class of financial instruments built on a Bitcoin foundation. Among these offerings, tokenised equity has gained particular prominence, enabling companies to issue shares in a digital form that is more transparent, efficient, and globally accessible than traditional securities. However, tokenised equity is only one part of the broader spectrum available on Bitfinex Securities, which also includes debt instruments and other financial products. By creating a compliant environment for these assets, Bitfinex Securities is helping to bridge the gap between traditional finance and digital asset markets.
At the 2025 Astana Finance Days, Bitfinex Securities announced a significant milestone, announcing that the platform was approaching $250 million in assets under management (AUM). This achievement highlights both the growing appetite for tokenised securities and the platform’s ability to attract issuers and investors to a regulated ecosystem. The milestone serves as evidence of the scalability of tokenisation when combined with compliant infrastructure and a strong focus on investor protections. It also positions Bitfinex Securities as a reference point in the rapidly expanding market for digital asset-based financial products.
In addition to announcing its AUM milestone, Bitfinex Securities revealed its intention to exit the Astana International Financial Centre (AIFC) regulatory sandbox and transition to a full licence. This step marks an important phase in the journey forward, signalling readiness to operate under a fully mature regulatory framework. Achieving a full licence would strengthen our ability to offer innovative products and expand the range of services available on the platform, making it an even more significant hub for tokenised securities. By aligning itself with the AIFC’s progressive approach to digital finance, Bitfinex Securities is helping shape the region into a focal point for innovation in tokenisation.
Bitfinex Securities has also set precedents outside of Kazakhstan, becoming the first company to receive a licence under El Salvador’s Digital Assets Law. This distinction demonstrates our global leadership ambition and pioneering role in regulated tokenised finance. Operating in both El Salvador and Kazakhstan demonstrates Bitfinex Securities’ ability to work with forward-thinking jurisdictions that are embracing digital asset-based financial markets. These achievements illustrate how Bitfinex Securities is carving out a leadership role in the tokenisation space, not only by innovating technologically but also by securing the regulatory foundations necessary for long-term growth and adoption.
The post appeared first on Bitfinex blog.
