PLUME rose 25 % after Plume Network registered with the SEC as a transfer agent for tokenized securities. The registration gives the network regulatory status and opens a path for regulated funds to hold tokenized assets, placing Plume among the first blockchain platforms to meet federal securities rules.
The SEC record lets Plume show institutions that the network follows existing law and gives 1940 Act funds a compliant entry point. Plume now aims to move part of the U.S. securities market, a market values in the trillions of dollars, onto a shared ledger. The goal is to replace paper lists plus manual steps with code that tracks ownership and updates in real time.
Further, it will facilitate a range of use cases, including onchain IPOs, small-cap fundraising, and registered funds. Most notably, the technology aims to reduce tokenization timelines from months to mere weeks via smart-contract automation.
Operations, efficiencies, and challenges for Plume
As a transfer agent, Plume records who owns each security and handles transfers as well as payments. The network replaces spreadsheets and phone calls with automated contracts, cutting the number of middlemen and lowering cost and delay for both issuers and investors.
“At Plume, we believe transfer agent regulation exists to protect investors’ rights as shareholders. With this fully onchain transfer agent protocol, we are streamlining the issuance of digital securities with a built-in partnership with regulators,” said Chris Yin, CEO and Co-Founder of Plume.
The same status forces the company to fund ongoing audits, file regular reports and face deeper SEC reviews. Custody of the tokens and the assets behind them remains a hurdle, as investors must trust that keys and vaults stay secure. Other platforms pursue similar approvals, and it has to prove its technology and controls are better.
The registration is a milestone, but long term adoption hinges on whether itkeeps custody safe, satisfies regulators and wins institutional clients in a market where competitors carry the same federal license.
