T7X's Ivan Kan says tokenised stocks need native issuance to confer ownership

Key points

• Ivan Kan cites Pantera Capital research finding 77.6% of 593 tokenised assets across 11 asset classes were digital wrappers around traditional infrastructure
• Pablo Penaloza says the near-term opportunity is companies raising under $100m, usually $50m to $75m, through Regulation A offerings

T7X's Ivan Kan says native issuance is the way to give tokenised stocks real legal backing, arguing that most tokens in the market merely track a share's price without making the holder a shareholder of record. In an essay shared with Decrypt, the tokenisation platform's chief marketing officer writes that a token may follow the value of underlying shares while ownership of the share itself stays elsewhere.

Under T7X's model, the token forms part of a security's authorised issuance from the start, with a transfer agent keeping the official record of ownership. Wyoming, Delaware and Nevada corporate law recognise a certificate token, and T7X is incorporated in Wyoming.

T7X Equities, which is registered with the SEC as a transfer agent, administers its own offerings.

Kan argues Regulation A+ suits the approach because it allows public solicitation and non-accredited investors while requiring audited financials and continuing disclosure, whereas most tokenised assets use Regulation D placements limited to accredited investors.

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