Securitize, a leading tokenization platform, today received approval from the Financial Industry Regulatory Authority (FINRA) to broaden the activities of its subsidiary, Securitize Markets, allowing it to custody tokenized securities and support onchain settlement within a regulated broker-dealer structure.
According to the official announcement, the authorization, granted through FINRA’s Continuing Membership Application process, also permits the firm to act as an underwriter and participate in selling groups for tokenized securities offerings.
Custody and settlement move into a single framework
With the approval, Securitize Markets can hold tokenized securities directly and facilitate transactions that settle onchain between securities and cash equivalents such as stablecoins. This setup enables so-called atomic settlement, where trades are executed and settled simultaneously, reducing reliance on multiple intermediaries. Traditionally, such transactions required separate custody arrangements, clearing processes, and reconciliation across systems.
The expanded permissions allow the firm to take a larger role in primary issuance, including initial public offerings and secondary sales of tokenized securities. By combining underwriting, custody, and execution within a single regulated entity, the structure introduces a pathway for companies to issue and distribute equity in tokenized form without relying on fragmented workflows.
Shift from multi-step processes to integrated execution
Historically, securities transactions have involved multiple steps across brokers, custodians, and clearinghouses. Each stage adds operational complexity and time delays. By integrating these functions, the model aims to streamline how tokenized securities are issued, traded, and settled, with transactions occurring in a single process rather than across separate systems.
Carlos Domingo, Co-Founder and CEO of Securitize, commented on the approval, stating, “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.”
Regulatory framework remains central
The approval places these activities within existing U.S. regulatory oversight, with Securitize Markets operating as a registered broker-dealer under Financial Industry Regulatory Authority supervision.
This approach contrasts with earlier tokenization efforts that operated outside traditional financial infrastructure, instead aligning blockchain-based processes with established market rules.
The development reflects a wider trend of integrating blockchain-based settlement into regulated financial systems. As firms explore tokenized equities and funds, the ability to combine issuance, custody, and settlement under one framework is emerging as a key step in adapting traditional capital markets to onchain infrastructure.
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