Binance founder Changpeng Zhao stated on Sept. 7 that initial public offerings will move on-chain as regulated exchanges and blockchain infrastructure providers expand support for tokenized securities. French aerospace supplier ST Group completed what Clifford Chance called the world's first fully tokenized IPO in April, raising €2.07 million through 113,525 shares priced at €18.25 each on the Lightning Stock Exchange under the EU's Distributed Ledger Technology Pilot Regime. The U.S. Securities and Exchange Commission approved Nasdaq's tokenized-securities pilot on March 18, and the New York Stock Exchange filed a similar rule change on April 9, while the Depository Trust Company ran live production tests with approximately 40 firms on July 15 and expects a broader tokenization service launch in October 2026. The shift follows blockchain infrastructure maturation and regulatory frameworks that allow public offerings to migrate from paper-based settlement systems to distributed ledgers.
CZ Predicts On-Chain IPO Migration on Sept. 7
Changpeng Zhao told the crypto industry on Sept. 7 that IPOs will move on-chain as regulated exchanges and blockchain companies expand infrastructure for tokenized securities. The Binance founder's forecast follows real-world pilots in Europe and the United States that have tested blockchain-based public offerings within existing securities frameworks.
ST Group Completes Tokenized IPO Under EU DLT Pilot Regime
French aerospace and defense supplier ST Group completed a fully tokenized initial public offering through the Paris-based Lightning Stock Exchange in April. The company raised €2.07 million by selling 113,525 shares priced at €18.25 each under the European Union's Distributed Ledger Technology Pilot Regime. Legal adviser Clifford Chance formally described the ST Group offering as the world's first fully tokenized IPO in its transaction record.
ST Group issued its equity on a blockchain-based market from the start of the offering, rather than wrapping already-listed shares into tokens afterward. Investors who bought in received regulated shares carrying real ownership, not tokens designed purely to mirror a stock's price.
SEC Approves Nasdaq and NYSE Tokenized Securities Pilots
The SEC approved Nasdaq's tokenized-securities pilot on March 18, letting eligible participants trade tokenized versions of selected Russell 1000 securities and major index-linked ETPs. Tokenized and conventional shares share the same order book, ticker, CUSIP, price and shareholder rights, and participants can instruct the Depository Trust Company to settle eligible trades in tokenized form.
NYSE followed with its own SEC filing on April 9, setting up a framework for tokenized securities to trade alongside conventional shares under the same DTC pilot. Neither program amounts to a native on-chain IPO — both simply apply blockchain-based settlement to securities that already trade within existing market structures.
Cantor Fitzgerald and Securitize announced in July that they are developing regulated infrastructure meant to support IPOs and follow-on offerings, while keeping traditional underwriting, compliance and investor-protection steps intact. Neither firm has named the first external issuer that will actually use the system.
DTCC Runs Live Tests and Announces October 2026 Launch
The Depository Trust Company conducted live production transactions involving about 40 firms on July 15, marking the shift of its tokenization service from development into actual production activity. According to DTCC's official update, a broader launch of that service is expected in October 2026.
SEC Outlines Legal Distinctions for Tokenized Securities
The SEC laid out distinctions between tokenized securities in a statement, dividing them into issuer-sponsored and third-party-sponsored structures. The agency made clear that moving ownership records onto a blockchain doesn't change how federal securities laws apply — offers and sales still need to be registered unless an exemption applies. That statement came from SEC staff rather than a formal Commission rule.
The term "tokenized stock" can describe an issuer placing its official shareholder register directly on a blockchain, or it can describe a third party issuing a token backed by shares held in custody elsewhere. A separate category offers only synthetic exposure to a stock's price without transferring any real ownership — holders of those products may have no voting rights, no dividends and no legal claim against the company the token is supposed to track.
Liquidity and Intermediary Roles Remain Key Challenges
Underwriters, auditors, lawyers, transfer agents and other regulated intermediaries still perform functions that go well beyond simply recording a transaction, and tokenization hasn't changed that. Round-the-clock trading requires continuous liquidity, active market surveillance and reliable cash settlement to function safely. A token might stay technically transferable even when its underlying market is closed, but thin liquidity in those windows can widen price gaps and make order books more volatile.
The London Stock Exchange and Kraken parent Payward are exploring tokenized UK public equities, with LSE 24 potentially supporting trading in xStocks during 2027, pending regulatory approval. That project remains under development and isn't itself a confirmed on-chain IPO.
FAQ
What did Binance founder CZ say about on-chain IPOs on Sept. 7?
CZ stated on Sept. 7 that initial public offerings will move on-chain as regulated exchanges and blockchain firms expand infrastructure for tokenized securities.
What did ST Group accomplish in April under the EU DLT Pilot Regime?
ST Group completed the world's first fully tokenized IPO on the Lightning Stock Exchange in April, raising €2.07 million through 113,525 shares priced at €18.25 each.
When does the DTCC expect to launch its broader tokenization service?
The Depository Trust Company expects a broader launch of its tokenization service in October 2026, following live production tests with approximately 40 firms on July 15.
