Issuer-Sponsored Tokens: a new option for US-listed issuers Ownership reimagined

An Issuer-Sponsored Token (IST) is a share held in tokenized form as part of issued capital alongside existing shares.

The token is the registered shareholding, and transfers are reflected in the official shareholder record in accordance with transfer-agent processes.

ISTs differ from “wrapper” or “overlay” tokenized products that sit on top of shares held by an intermediary.

Markets are increasingly exploring how tokenization can modernize parts of capital markets infrastructure. For issuers, ISTs provide a way to respond to that interest while maintaining the fundamentals that matter most in public-company share ownership.

Issuer-Sponsored Tokens allow us to modernize ownership without disrupting the integrity, regulation, or trust that underpin U.S. capital markets. With ISTs, issuers can:

• Preserve issuer oversight and control over securities issued in the company's name
• Maintain direct issuer-to-shareholder communications and corporate actions

Interoperability with existing markets is expected to evolve as market infrastructure develops.

• Computershare’s approach is designed to work with the established public-market framework
• Computershare continues to act as transfer agent and recordkeeper
• The official shareholder record (master securityholder file) is preserved
• Corporate actions (including dividends, proxy and splits) continue to be processed alongside other registered holdings
• Tokenization changes the form of holding, not the underlying share itself

• An issuer offers ISTs as an optional holding form
• Eligible shareholders can choose to hold shares as ISTs or keep holding them in traditional forms
• Transfers of ISTs are recorded on a distributed ledger and reflected in the official shareholder record through established processes
• Holders can move between forms (for example, converting ISTs back to traditional holdings) subject to applicable processes and eligibility requirements
• Holders can access liquidity via ATS environments or market makers
• Interoperability with existing markets is expected to continue to evolve as market infrastructure develops