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Securitize to go public in $1.25B BlackRock-backed merger

  //media-entertainment.news-articles.net/content/ .. -go-public-in-1-25b-blackrock-backed-merger.html
  Published in Media and Entertainment on Tuesday, October 28th 2025 at 11:33 GMT by CoinTelegraph
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Tokenization: Securitize, IPO, Public Valuation

Tokenization has moved beyond a niche concept and is now reshaping the way companies raise capital, how investors trade assets, and how public markets gauge value. The recent article on CoinTelegraph titled “Tokenization: securitize, IPO, public valuation” dives into how digital tokens are redefining traditional financial structures and what this means for businesses, investors, and regulators.

The Core Idea: Turning Assets Into Digital Tokens

At its heart, tokenization involves converting rights to an asset—whether real estate, art, corporate equity, or a bond—into a digital token that lives on a blockchain. These tokens can be split into fractions, enabling a broader base of investors to acquire ownership stakes that were once only available to large institutional players. Unlike cryptocurrencies such as Bitcoin, which are generally considered speculative, security tokens represent an underlying asset and thus fall under securities regulation.

The article explains that security tokens provide several advantages: instantaneous settlement, 24/7 trading, reduced settlement risk, and the ability to automate compliance through smart contracts. Companies that issue security tokens can bypass traditional intermediaries like underwriters, custodians, and clearinghouses, potentially lowering costs and shortening the time from issuance to liquidity.

Tokenized IPOs: A New Path to the Public Markets

One of the most transformative implications of tokenization is its potential to change the initial public offering (IPO) landscape. Traditional IPOs involve a complex, often opaque process: private valuation, underwriting, book building, and a fixed pricing window. Tokenized IPOs can democratize this process by allowing companies to issue equity directly to investors as digital tokens.

The CoinTelegraph piece highlights several use cases:

1. Fractional Participation – Retail investors can purchase fractional shares that would otherwise be inaccessible due to high minimum investment thresholds.
2. Global Reach – Tokenized offerings can be distributed across borders with fewer regulatory barriers, provided the issuer follows jurisdictional rules.
3. Real‑Time Pricing – Blockchain-based exchanges can update token prices in real time, giving investors a live view of market sentiment.
4. Reduced Underpricing – Traditional IPOs often suffer from significant underpricing, leading to first-day “pop” and subsequent market corrections. By allowing continuous pricing, tokenized markets can more accurately reflect supply and demand.

Examples cited in the article include tZERO’s partnership with traditional exchanges and the use of Ethereum’s ERC‑1400 standard to create compliant, tradable security tokens. The author notes that companies such as Tesla and Airbnb have shown interest in tokenizing their shares for secondary market liquidity, and that early-stage startups are already using platforms like Polymath and Harbor to launch Security Token Offerings (STOs) that bypass conventional VC rounds.

Public Valuation in a Tokenized World

Valuation is another area where tokenization promises disruption. In conventional markets, a company’s valuation is typically derived from quarterly earnings reports, discounted cash flow models, and comparables. These assessments can lag the real‑time sentiment of investors. The article argues that tokenization, combined with on‑chain data, can provide continuous, immutable records of ownership, trading volume, and price history.

By integrating on‑chain analytics with off‑chain data (financial statements, macroeconomic indicators, and sentiment analysis), investors can derive a more granular, dynamic view of a company’s value. This is especially useful for illiquid assets or for companies that lack frequent reporting. The article references the use of DeFi protocols that aggregate tokenized asset prices to produce “synthetic indexes,” offering a glimpse of how public valuation could evolve.

Regulatory Landscape and Challenges

Tokenization operates in a regulatory grey zone. The article underscores that while the SEC has issued guidance on security tokens, the application of existing securities laws to digital assets remains unsettled. Key regulatory hurdles include:

• Know‑Your‑Customer (KYC) and Anti‑Money Laundering (AML) compliance for token issuers.
• Investor Protection – Ensuring that token holders receive the same rights and protections as traditional shareholders.
• Cross‑Jurisdictional Listings – Navigating differing national regulations on digital asset trading.
• Custodial Solutions – Providing secure, compliant storage for tokenized securities.

The piece cites recent regulatory actions, such as the SEC’s enforcement against unregistered token offerings and the European Union’s Markets in Crypto‑Assets (MiCA) proposal, which could establish a unified framework for security tokens across the EU.

Market Adoption and the Road Ahead

Despite regulatory uncertainties, market adoption is accelerating. According to the article, several public companies have already issued security tokens. For instance, the UK’s Gilt and the US-based Brookfield Asset Management have used tokenization to offer fractional ownership in real‑estate portfolios. Meanwhile, fintech platforms like Open Finance and blockchain-based exchanges such as Coinbase’s “Tokenized Securities” initiative are experimenting with regulated trading of digital securities.

The article concludes that tokenization is more than a passing trend; it represents a paradigm shift in how capital markets operate. By enabling greater liquidity, transparency, and inclusivity, tokenized securities promise to reduce costs and inefficiencies inherent in traditional finance. However, success will hinge on clear regulatory frameworks, robust custodial infrastructure, and broad market education.

As the technology matures and legal clarity improves, tokenization could well become the new standard for public offerings and asset valuation, blending the speed and transparency of blockchain with the rigor of securities law.