How T7X Is Building the Infrastructure for a New Era of Capital Markets
T7X Equities is pioneering native issuance of tokenized securities, creating a new model where blockchain tokens represent shares from the moment of authorization, rather than as separate wrappers around traditional assets.
Most tokenized stocks aren't natively issued on blockchain. They begin as conventional shares, sit with a broker or custodian, and are then represented by tokens issued separately. This approach replicates traditional securities structures on-chain rather than rethinking them fundamentally.
The token holder owns the price movement but not necessarily the share itself. As Ivan Kan, CMO of tokenization platform T7X, explains: the token holder is not the shareholder of record. The SEC has outlined three models for tokenization, including issuers tokenizing their own shares, third parties issuing tokens against shares in custody, and firms creating separate securities for synthetic exposure.
What does the token legally represent, and who authorized it?
Native Issuance Model
T7X advocates for native issuance, where the token is part of the authorized issuance from the start. This model follows the principle that one security, one authorized issuance, one ownership record, one digital representation should be the standard. Wyoming, Delaware, and Nevada corporate law recognize certificate tokens, allowing shares to be represented on blockchain.
T7X is incorporated in Wyoming and structures its issuances within this legal framework. The blockchain becomes part of the infrastructure supporting the capitalization table rather than just another instrument layered on top. The transfer agent maintains the official securityholder record while blockchain records transactions.
T7X Equities serves as the transfer agent for its offerings, registering with the SEC and maintaining the authoritative ownership record. The company's first example is Tranquil Healthcare Fund I, a Tier 2 Regulation A+ offering of up to $75 million that the SEC qualified on June 29.
As long as you have a transfer agent involved, there is no way that securities can disappear without trace.
RWA+ Framework
Kan calls T7X's broader approach RWA+ - emphasizing that compliance and oversight must be real. This framework rests on three elements: native issuance, integrated compliance, and legally enforceable ownership. A receipt is not an asset, Kan wrote in Forbes. It is a claim wrapped around one, dependent on an intermediary to honor it.
The SEC's new innovation exemption covers tokenized stocks carrying dividends and voting rights while excluding price-tracking synthetics. Similarly, Nasdaq's arrangement with Kraken requires tokens to convey the same voting rights as ordinary shares. Penaloza sees near-term opportunities for companies raising under $100 million through Regulation A offerings.
Regulation A+ suits this model because it permits public solicitation and non-accredited participation while requiring audited financials. It also opens the door to retirement accounts, where registered securities make individual retirees more comfortable. For existing shareholders, the benefit is liquidity - native digital securities can trade on secondary markets, settling wallet to wallet without custodians.
Penaloza predicts that within five years, the total tokenized portfolio will far surpass the existing market capitalization of what is currently trading on all the public markets. Giving Reg A and Reg D holdings a place to trade would, he argues, incredibly speed up not only the rate of capital formation, but also the liquidity in the market.
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