FG Nexus Pioneers On-Chain Equities by Tokenizing Nasdaq Shares on Ethereum with Securitize

FG Nexus, an Ethereum-focused digital asset treasury firm, has partnered with tokenization specialist Securitize to allow investors to hold its common and preferred shares as tokens on the Ethereum blockchain. This move marks a significant step in bringing traditional equities onto decentralized networks, offering enhanced efficiency and accessibility for shareholders.

Key Takeaways

• FG Nexus and Securitize are collaborating to tokenize FG Nexus' common and preferred shares on the Ethereum blockchain.

• This initiative enables legal, on-chain trading of FG Nexus equity with instant settlement and automated compliance.

• FG Nexus aims to be the first U.S. exchange-listed dividend equity to transition fully onto the crypto rails with its perpetual preferred stock.

Streamlining Shareholder Experience

FG Nexus shareholders will have the option to convert their traditional common stock (FGNX) and perpetual preferred stock (FGNXP) into Ethereum-based tokens. These tokens will confer the same legal rights as traditional shares, ensuring a seamless transition for investors. The process is designed to streamline the ownership and trading of public equities using blockchain technology, while adhering to existing regulatory frameworks.

Regulatory Compliance and Efficiency

Securitize will provide the regulated infrastructure for this tokenization program, leveraging its status as an SEC-registered broker-dealer, transfer agent, and operator of an Alternative Trading System (ATS). This ensures that the tokenized shares represent genuine legal ownership and can be traded on-chain, subject to the same transfer restrictions as traditional securities. The tokenized shares are expected to settle almost instantaneously and be tracked on the blockchain.

Embracing the Programmable Age of Finance

Maja Vujinovic, CEO of Digital Assets at FG Nexus, stated, "Tokenization is rapidly changing financial markets through increased efficiency and enhanced investor access. By tokenizing our shares, we're embracing blockchain technology to further enhance the shareholder experience while maintaining the highest standards of regulatory compliance."

Carlos Domingo, co-founder and CEO of Securitize, added, "Public markets are entering the programmable age. Our project with FG Nexus is expected to result in U.S. investors being able to hold real stock, not a synthetic wrapper, with instant settlement, automated compliance and the ability to trade onchain through our regulated ATS."

This initiative follows a broader trend of financial instrument tokenization gaining momentum in the crypto market, with companies like Robinhood, Gemini, and Kraken also exploring tokenized versions of publicly traded assets. FG Nexus' approach focuses on native tokenization, providing identical rights to token holders as regular shareholders.

### Sources

• ETH Treasury Firm FG Nexus Tokenizes Shares With Securitize, CoinDesk.

• FG Nexus brings tokenized stock trading to Ethereum, Blockworks.

• FG Nexus partners with Securitize to tokenize shares on Ethereum, Crypto Briefing.

• FG Nexus and Securitize Enter into Agreement to Natively Tokenize FG Nexus Public Shares on Ethereum |Reuters, Reuters.

• FG Nexus to Tokenize Nasdaq-Listed Shares on Ethereum in Securitize Tie-Up – Crypto News Bitcoin News, Bitcoin.com News.