Injective announced that it has applied for transfer agent registration with the US Securities and Exchange Commission. If the application is approved, it is aimed to move basic functions such as keeping partnership records and monitoring ownership changes in the securities markets to the blockchain infrastructure.
Scope of application
Transfer agents are among the critical institutions in the U.S. capital markets infrastructure that maintain shareholder records and monitor changes in security ownership. Injective, a layer 1 blockchain focused on decentralized finance and tokenized real-world assets, argues that moving this functionality on-chain could open a regulatory-compliant path for the issuance and management of tokenized assets.
If the application is accepted, Injective will go beyond being a network that only provides infrastructure for tokenized assets. Thus, the system can become part of the regulated processes that determine who the legal owner of a security is. The company states that this model can reduce the need for reconciliation between brokerage firms and transaction delays.
Injective noted that there is a need for regulatory-compliant ownership records that provide sub-second reconciliation for tokenized securities and real-world assets, and that it aims to offer this capacity at scale in the United States.
Injective did not disclose which legal entity the application was made through. Additionally, no public SEC filing has been made public. For this reason, it seems that the application cannot be verified by independent sources.
Mini glossary: A transfer agent is a registrar who maintains shareholder records, processes ownership changes, and conducts certain corporate transactions on behalf of the securities issuer. Real-world assets, or RWA, refer to the tokenized representation of traditional assets such as bonds, shares, fund shares or real estate on the blockchain.
Traditional finance’s interest in blockchain is growing
Traditional financial institutions have recently turned more towards blockchain technology to renew the basic infrastructure of capital markets. This interest is not limited to the tokenization of assets. Exchanges and market operators are also trying to use this technology in market data distribution, securities issuance, clearing and post-trade processes.
Nasdaq stands out as one of the most active institutions in this field. Last month, the exchange took steps to bring its TotalView market data to blockchain applications by partnering with on-chain financial data network Pyth. Earlier in the year, Nasdaq started working on infrastructure connecting traditional stocks to blockchain networks with Kraken and tokenization company Backed.
Intercontinental Exchange, the parent company of the New York Stock Exchange, also expanded its infrastructure for on-chain stocks and exchange-traded funds by partnering with Securitize. This structure is intended to support the goal of around-the-clock transactions and instant reconciliation.
Broader transformation of US market infrastructure
Depository Trust & Clearing Corporation, the primary post-transaction infrastructure provider for the US securities markets, is also preparing to launch its tokenized Collateral AppChain platform. With this platform, the institution plans to automate collateral management and reconciliation processes in financial markets.
| Organisation | Attempt | focus area |
|---|---|---|
| injective | Application for transfer agent registration with the SEC | Ownership records and tokenized asset management |
| Nasdaq | Pyth, Kraken and Backed collaborations | Market data and share infrastructure |
| Intercontinental Exchange | Securitize partnership | On-chain share and ETF infrastructure |
| DTCC | Collateral AppChain preparation | Collateral management and reconciliation automation |
If the application is approved, Injective will go beyond tokenized asset infrastructure and become involved in regulated systems that determine legal ownership of a security.
