Bullish, Alpaca and Apex Fintech form coalition to push issuer-backed tokenized stocks

A new industry group called the Issuer Sponsored Token Coalition has been formed by Bullish, Equiniti, Alpaca, Apex Fintech Solutions and DriveWealth to set standards for tokenized securities that remain directly tied to issuing companies. Convened by Bullish and shareholder-services firm Equiniti, the coalition said it will address technical specifications, settlement and custody arrangements, and mechanisms to transfer securities between conventional market infrastructure and blockchain networks.

The coalition's central aim is to promote issuer-sponsored tokenization, where a tokenized share is linked to the issuer's official shareholder register. That model is intended to preserve shareholder rights such as voting, dividends and participation in corporate actions — differentiating it from products that provide only economic exposure to a stock without formal ownership rights.

The distinction between issuer-linked tokens and synthetic or price-tracking products has drawn attention recently as issuers, brokers and regulators debate which structures convey legal shareholder status. The issue surfaced prominently in a public dispute involving AMC Entertainment's CEO and a trading platform, highlighting concerns that some token or synthetic offerings might leave holders without the same legal entitlements as registered shareholders.

Participants in the coalition said they want to ensure onchain markets remain interoperable with the existing systems that record and service shareholder rights. Bullish emphasized the long-term importance of the architecture being developed, while Alpaca highlighted its Instant Tokenization Network as a way to help connect traditional securities systems with onchain markets. The group noted its formation follows the U.S. Securities and Exchange Commission's recent exemption permitting limited onchain trading of U.S.-listed equities under specified conditions.