Tokenization of securities: What Canadian issuers need to know

Across North America, market participants are increasingly focused on the tokenization of securities. This growing interest reflects broader efforts to modernize capital markets infrastructure, including recordkeeping, settlement, and investor access, while preserving established legal and governance frameworks.

By Tara Israelson, General Manager, Issuer Services, Computershare Canada

Regulatory discussions have accelerated over the past year in both the United States and Canada, as authorities consider how distributed ledger technology may be used responsibly within existing securities laws without altering the fundamental rights and obligations associated with securities.

Recent SEC guidance emphasizes that tokenization “changes the format, not the legal identity” of a security, reaffirming that tokenized versions remain fully subject to securities laws and issuer obligations under existing frameworks. This approach aligns with the Canadian Securities Administrators’ (CSA) longstanding technology‑neutral regulatory posture. CSA staff notices and Innovation Hub initiatives recognize tokenization as an important emerging theme in market modernization, while reaffirming that existing securities law requirements continue to apply.¹

Market infrastructure providers are also accelerating innovation. NASDAQ’s proposed rule changes would enable tokenized securities to trade alongside their traditional counterparts, provided they share the same CUSIP and material rights. Under this model, tokenized shares would be identical in voting, dividend, and ownership rights, with blockchain technology serving primarily to improve settlement efficiency and transparency.²

For issuers, tokenization can help modernize parts of capital markets infrastructure with potential benefits such as faster settlement cycles in some markets, and enhanced reconciliation while maintaining familiar governance, disclosure, and compliance structures for public-company share ownership. At the same time, Canadian regulators continue to prioritize safeguards, ensuring that innovations do not compromise investor protection or market integrity.

As the world’s leading transfer agent and a trusted partner to Canadian public companies, Computershare actively represents issuer and shareholders’ interests in policy discussions by monitoring market structure developments and engaging with regulators and industry stakeholders. We use that feedback to develop commercial solutions and to enhance our products and services, where appropriate, ensuring that any transition to tokenized models preserves accuracy, transparency, and the essential protections embedded in today’s market systems.

Computershare will be participating in the CSA Collaboratory on Tokenization. Issuers interested in contributing to this discussion are encouraged to connect with the CSA Innovation Hub directly.³ Please connect with your relationship manager with any questions about tokenization and how Computershare can support this digital share format.

Computershare introduces tokenized shares for US issuers

¹ CSA Staff Notice 46-308: Securities Law Implications for Offerings of Tokens
² Digital Assets at Nasdaq | Nasdaq
³ Fall 2025 Theme – Tokenization - Canadian Securities Administrators.

Computershare is not providing, and does not intend to provide, any legal, tax or investment advice.