The firm FG Nexus, known for holding its treasury in ETH, has announced a strategic alliance with Securitize to tokenize shares on Ethereum. This agreement will allow its Nasdaq-listed shares to be converted into digital tokens, starting with its common stock and later expanding to a dividend-paying preferred stock issue. The announcement was made by executives from both companies.
The initiative aims to combine the efficiency and liquidity of Blockchain technology with the strict regulatory compliance of the traditional stock market. According to the statement, the goal is to offer an innovative channel for both institutional and retail investors who already own FG Nexus shares, allowing transfers and records to be executed automatically on the blockchain.
A Bridge Between Traditional Finance and Decentralization
The plan will begin with the tokenization of the company’s common stock. Subsequently, the preferred stock (Nasdaq: FGNXP) will be included, a move that the company claims represents the first stock of its kind to be natively tokenized in the United States. Securitize, an entity registered with the SEC and FINRA, will handle all the technical infrastructure, including institutional investor onboarding, compliance management, and custody of on-chain records.
Kyle Cerminara, CEO of FG Nexus, stated that this measure “places the company at the forefront of financial innovation.” Meanwhile, Maja Vujinovic, Co-Founder of Digital Assets at FG Nexus, explained the choice of Ethereum due to its security, decentralization, and maturity of its smart contracts, highlighting that it “offers the pathway that already works at scale for regulated assets.”
Implications of a Stock Market on the Chain
The collaboration represents a significant step for the adoption of real-world assets (RWAs) in the digital ecosystem. Carlos Domingo, CEO of Securitize, noted that native tokenization “delivers real ownership and efficiency” for public stocks. Securitize’s track record includes managing large-scale issuances, such as BlackRock’s BUIDL fund, which already exceeds $2 billion in on-chain assets.
This development opens a regulated pathway for issuers to use tokenized shares, which could expand market access. However, it also highlights inherent risks, such as regulatory uncertainty and the need to build a liquid secondary market. Vujinovic mentioned that there are already nearly $8 billion in treasuries on Ethereum, a sign of growing institutional interest.
The success of this pioneering project will largely depend on its acceptance by financial intermediaries and final approval from regulators. This initiative not only tests the ability to tokenize shares on Ethereum at scale but also sets a precedent for the future of how traditional financial assets might interact with decentralized finance.
