Ed’s Tokenized Securities Railshuman-curated, LLM-maintained

Legal taxonomy of tokenized securities

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In plain English: The SEC sorts tokenized stocks into a few legal types. This page explains each one, because the type decides what you actually own.

The SEC staff statement of 28 Jan 2026 (SEC) is the vocabulary used throughout this wiki:

  • Issuer-sponsored tokenization: the issuer (or its agent) integrates DLT into its securityholder records; the onchain record is, or feeds, the master securityholder file. Examples: Superstate Opening Bell, Securitize transfer-agent issuances.
  • Third-party tokenization, split into:
    • Custodial / security entitlement: a third party holds the security and the token evidences an entitlement (e.g. UCC Article 8). Examples: Securitize Stocks, Coinbase B20, DTC Tokenized Entitlements (post-trade model).
    • Synthetic / linked: the token is a separate security (e.g. a note) or security-based swap referencing the stock. Examples: Ondo Stocks (notes), Robinhood Stock Tokens (debt securities), bStocks (certificates).
  • Format does not change legal obligations (SEC; analysis: Sidley, Jones Day).

Broker-dealer custody

Rule 15c3-3 possession-and-control applies to crypto asset securities. The 2020 special-purpose broker-dealer statement is not mandatory (SEC TM FAQ). The 17 Dec 2025 TM statement describes how a broker-dealer establishes physical possession. It covers:

  • the ability to transfer the asset
  • private-key protections
  • network risk assessment
  • contingency plans

Sources: SEC; Sidley.

See also implementations compared by model.

Sources

Public originals for the facts on this page.

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