Key Takeaways:
- Securitize Markets received expanded FINRA permissions for tokenized securities custody, settlement, underwriting, and distribution.
- Transactions can now settle onchain against stablecoins inside a regulated broker-dealer framework.
- Executives said the approval strengthens infrastructure for tokenized stock offerings and IPO processes.
Securitize Markets Expands Tokenized Securities Custody
Securitize, a leading tokenization platform, announced on May 4, 2026, that its broker-dealer subsidiary, Securitize Markets LLC, received expanded approval from the Financial Industry Regulatory Authority (FINRA). The approval broadens the broker-dealer’s permissions across regulated custody, settlement, underwriting, and selling group permissions for tokenized securities, widening the firm’s role in on-chain capital markets.
The core change is operational control. Securitize Markets can now keep tokenized securities inside the broker-dealer while transactions settle against stablecoins on-chain. That structure is designed to reduce the number of separate accounts, parties, and manual steps involved in completing digital securities trades. Securitize stated:
“Through this process, Securitize Markets is now the first company to be approved to custody tokenized securities in a regular broker-dealer, enabling it to facilitate atomic swaps and clear and settle transactions between tokenized securities and stablecoins onchain.”
“The approval also permits Securitize Markets to be an underwriter and selling group participant for both initial and secondary tokenized securities offerings,” the company added. The approval also gives Securitize Markets a larger role in offerings, not only secondary-market activity. Carlos Domingo, Co-Founder and CEO of Securitize, said: “Bringing custody of tokenized securities into the broker-dealer is a foundational unlock. It allows us to facilitate atomic settlement transactions between securities and cash equivalents within our broker-dealer ATS, eliminating the need for fragmented processes and enabling markets to operate with the speed and efficiency of blockchain infrastructure within a regulated environment.”
FINRA Approval Strengthens Onchain IPO Infrastructure
FINRA cleared the expansion through the Continuing Membership Application process, the route broker-dealers use when adding major capabilities or new business lines. The result is a broader permission set for Securitize Markets across the tokenized securities lifecycle. Securitize noted:
“This milestone represents a major advancement for regulated digital asset markets, unlocking real-time, onchain settlement within 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 completion. By moving custody and settlement into the broker-dealer, 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 underwriting and selling group approvals greatly enhance our capabilities to assist tokenizing securities during the IPO process. The case for new and existing publicly traded companies to tokenize stock continues to get more compelling. We’re excited about what comes next.” The broader takeaway is a more complete regulated framework, where custody, distribution, trading, and settlement can operate inside one broker-dealer model.