Custody

In plain English: Who holds the real share, and who controls the token, differs by model. This page shows who keeps what.

Who holds the real share, and who holds the keys, differs by model (see the overview).

Backed (third-party) models

Backed models hold the underlying shares with a custodian or broker-dealer (Ondo: US broker-dealers; Dinari: registered US broker-dealer; Coinbase: bankruptcy-remote structure) (Zerion, secondary; Fensory, secondary). SEC staff note that holders of third-party tokens may face risks, such as the third party’s bankruptcy, that holders of the underlying share would not (SEC staff statement, 28 Jan 2026).

Issuer-sponsored models

These replace custody with a transfer-agent register: the token is the ownership record (see Securitize, Superstate).

DTC tokenized entitlements

Tokens are backed 1:1 by securities held at DTC, and DTC keeps the official books and records (DTCC Tokenization Service; DTCC tear sheet). The service went live on 28 Oct 2026, delivering tokens to participants’ wallets of choice (DTCC).

Broker-dealer custody of tokens

SEC staff will not object to a broker-dealer treating itself as having “physical possession” of a crypto asset security under Rule 15c3-3(b)(1) if conditions are met, chiefly control of the private keys and safeguards against their theft or loss (SEC staff statement, 17 Dec 2025). This is a staff statement, not a rule.

Vendors

Zerohash markets a tokenization engine to brokerages (Zerohash).

What this means for holders

With a wrapper, your protection depends on the issuer’s custodian and whether the structure is bankruptcy-remote.
Platform custody and token custody are separate questions: a venue can list a token without holding it (e.g. OKXICE).

Reference information only, not investment advice.

Sources

Public originals for the facts on this page.

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

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