FAQs on Issuer-Sponsored Tokens and tokenized equity securities

An Issuer-Sponsored Token (IST) is a digital form of company issued share, administered on a distributed ledger and held by investors in public wallets, while maintaining issuer control, transfer agent oversight, shareholder rights, and regulatory compliance.

Here we answer your most frequently asked questions about the tokenization of equity securities and Issuer-Sponsored Tokens.

How do Issuer-Sponsored Tokens differ from third-party tokenized securities such as wrappers and custodized tokens?

When an investor holds an Issuer-Sponsored Token, they are not holding a wrapper or derivative which is a third-party tokenized security nor are they holding beneficial entitlement to a security. They are a registered shareholder, with the same rights as any other registered holder for dividends, voting and corporate actions.

The token is not linked to the share – it is the share.

What are the benefits of tokenized securities for investors?

For investors, the tokenization of securities delivers:

• A new way to hold public equity alongside digital assets in a public wallet
• Global, near‑instant, peer‑to‑peer transfer capability
• Fewer intermediaries between the shareholder and the issuer

It meets the growing demand from digitally native investors without forcing issuers or the market to change how equity fundamentally works.

What are the benefits of Issuer-Sponsored Tokens for issuers?

For issuers, Issuer-Sponsored Tokens offer:

• More choice in how shareholders hold their shares
• Clear visibility into token holders
• Access to new, often global, investor segments

Issuer-Sponsored Tokens give companies a controlled alternative to unauthorized third‑party tokenization that could otherwise impact governance, investor experience, or brand.

How do Issuer-Sponsored Tokens work with the Direct Registration System (DRS)?

Issuer-Sponsored Tokens are designed for interoperability. Investors can move freely between:

• DRS and token form
• Token form and DRS
• DRS and brokerage (DTCC), as they do today

Blockchain transfers can occur continuously, while dividends, proxies, and corporate actions initially continue through established processing. That balance allows progress without operational disruption. Over time, distribution of dividends through stablecoins, voting on-chain and distribution of tokens for other corporate actions will be developed.

Are Issuer-Sponsored Tokens regulated?

Issuer-Sponsored Tokens retain transfer agent protections. Tokens can be recovered in cases of fraud or lost credentials. Identity verification, recordkeeping, and investor protection obligations continue to apply.

With Issuer-Sponsored Tokens, the transfer agent, such as Computershare, retains responsibility for the master securityholder file. Regulatory guidance allows that record to be maintained across multiple databases. That enables the transfer agent to connect traditional shareholder records with blockchain activity, while maintaining auditability, oversight, data security and control.

How does the SEC's Innovation Exemption affect Issuer-Sponsored Tokens?

Launched on September 17, 2026, the SEC's Innovation Exemption is a temporary framework designed to facilitate experimentation in the trading of tokenized US-listed securities. Effective until September 17, 2031, the exemption permits eligible Tokenized Securities Venues (TSVs) to operate automated market maker platforms without registering as exchanges, subject to specified SEC conditions.

TSVs can make US-listed stocks tokenized by or on behalf of the issuer by their transfer agent, or by an unaffiliated third party, available for trading (wrappers are not eligible). In all cases, the tokenized securities must carry the same economic, voting, dividend and liquidation rights as their conventional counterparts.

When an unaffiliated third party tokenizes the shares, the TSV must notify the issuer before making them available for trading, waiting 30 calendar days after the issuer receives the notice. During that period, the issuer may submit a written objection, which prevents the TSV from offering the tokenized security under the exemption.

Issuer-Sponsored Tokens are not about replacing today's capital markets. They are about extending them – securely, responsibly, and in a way that bridges traditional infrastructure with what comes next.

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

Let's talk

If you would like to explore Issuer-Sponsored Tokens for your company, please reach out to your Relationship Manager or contact Computershare.