T7X Pushes “Native Issuance” Model to Redefine Tokenized Stocks
T7X Equities is building a blockchain‑based framework that integrates token issuance directly with corporate and securities‑law requirements.
Current State of Tokenized Stocks
Most tokenized stocks are not issued directly on a blockchain. They start as ordinary shares held by a broker or custodian, then a separate token is created to “track the value of the underlying shares,” according to Ivan Kan, chief marketing officer of tokenization platform T7X. The token holder may benefit from price movements, but the holder is not necessarily the shareholder of record.
The SEC outlined three models in January: issuers tokenizing their own shares, third parties issuing tokens against shares held in custody, and firms issuing a separate security for synthetic exposure.
Kan cited Pantera Capital research covering 593 tokenized assets across 11 asset classes, noting that 77.6% were “digital wrappers around traditional infrastructure” rather than independent securities.
Introducing “Native Issuance”
Kan asks, “What does the token legally represent, and who authorized it?” T7X’s answer is a model called native issuance. Under this approach, the token is part of the authorized issuance from the start, linking issuer authorization, investor verification and transfer‑agent validation into a single record: “one security, one authorized issuance, one ownership record, one digital representation.”
Wyoming, Delaware and Nevada corporate law recognize a “certificate token,” allowing shares to be represented electronically on a blockchain. T7X, incorporated in Wyoming, structures its offerings to fit this framework, making the blockchain part of the capitalization‑table infrastructure rather than an added layer.
How the Model Works
Transfer Agent Role: The transfer agent maintains the official master security‑holder file, while the blockchain records transactions.
Legal Ownership: The legal record stays where regulators expect it, preserving compliance.
T7X as Transfer Agent: In T7X’s administrated offerings, T7X Equities itself acts as the transfer agent, registered with the SEC and holding the authoritative ownership record.
First Regulated Offering
T7X’s inaugural example is Tranquil Healthcare Fund I, a Tier 2 Regulation A+ offering of up to $75 million that the SEC qualified on June 29. T7X Equities issued tokens representing the fund’s shares on Trusted Smart Chain and delivered them to investors’ wallets.
“There’s a registered, SEC‑regulated gatekeeper that determines who owns which security at any point in time,” said T7X CEO Pablo Penaloza at Consensus in Miami. “As long as you have a transfer agent involved, there is no way that securities can disappear without trace.”
Defining the “RWA+” Category
Kan labels the broader category RWA+. The “plus” signifies that compliance and oversight are real, built on three pillars:
Native Issuance: Token created as part of the authorized security.
Integrated Compliance: Investor verification and disclosure embedded from the outset.
Legally Enforceable Ownership: Token holder appears on the transfer agent’s record.
He notes that a receipt is not an asset but a claim dependent on an intermediary. Synthetic “PreStocks” tied to SpaceX and Anthropic lacked valid claims because the companies did not authorize the transfers. Properly done, “ownership, compliance and settlement are the same fact.”
Regulatory Landscape
The SEC’s new innovation exemption covers tokenized stocks that carry dividends and voting rights while excluding price‑tracking synthetics. Nasdaq’s arrangement with Kraken also enables tokens to convey the same voting rights as ordinary shares.
Target Market and Investor Benefits
Penaloza sees the near‑term opportunity in companies raising under $100 million, typically between $50 million and $75 million, through Regulation A offerings. Regulation A+ permits public solicitation and non‑accredited participation, requires audited financials and ongoing disclosure, and can open access to retirement accounts.
For investors holding traditional securities, a native digital security offers an exit route. Shareholders in Reg A and Reg D placements usually receive paper certificates and must find a buyer for liquidity. A native digital security can trade on a secondary market, settling wallet‑to‑wallet without an intervening custodian.
