The SEC has proposed letting blockchain ledgers stand as the official ownership record for tokenized securities, ending the current split between onchain tokens and offchain shareholder registers. Transfer agents would keep enforcing identity and transfer rules, and the public comment window runs 60 days, closing in early November.
A blockchain entry could soon count as the binding proof of who owns a tokenized stock, not just a copy of it sitting next to the real record. Today, tokenized securities often run on two separate ledgers: the onchain token and an offchain shareholder register that lawyers currently treat as the legal one, even when the blockchain version is more current.
Ending the two-ledger problem
That could change under a proposal the SEC put forward last week to overhaul five-decade-old transfer-agent rules, which would let electronic databases, including distributed ledgers, serve as the official record of securities ownership. If adopted, a blockchain could become the master security file, replacing the parallel offchain records that tokenized issuers still keep as backup.
Centrifuge chief legal officer Eli Cohen said the change could turn today's two-ledger setup into a one-step process, with the blockchain itself acting as the master file. That distinction matters most when something goes wrong: according to CoinDesk, "If there was an insolvency or a bankruptcy, there would be just a mess," Cohen said.
Transfer agents keep their paperwork
The proposal would not make tokenized securities permissionless. Fairmint CEO Joris Delanoue said the underlying ledger can stay public, but the asset must still follow existing rules on who can own it and how it can move, with identity checks and transfer restrictions built into the token itself.
Transfer agents would also keep handling manual duties such as shareholder deaths, inheritance, and legal notices. Delanoue pointed to firms' handling of incoming mail as an example: they must receive, open, identify and act on mailed documents, and he said the current processing window of three to five days could shrink to about one day under the new rules.
Industry keeps building around tokenization
The proposal lands as related infrastructure keeps expanding. Crypto.news reported that Cosmos has formed a 17-company partner network covering custody, compliance, and security for banks using its tokenization system. Wells Fargo plans to use the technology for a cross-border tokenized deposit project in fall 2026, according to the outlet.
Public comments on the SEC's proposal remain open for 60 days, closing in early November, and Cohen expects a flurry of submissions from both traditional and blockchain-native firms.
Sources: CoinDesk, crypto.news
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