Bullish said on Oct. 27 that Qube Research & Technologies (QRT), Vertalo and Zero Hash have joined the Issuer Sponsored Token Coalition, expanding a group that is trying to set a compliant model for tokenized U.S. equities.
The coalition was launched on Sept. 24 by Bullish and Equiniti (EQ), a securities registry and transfer agency firm. Its earlier members included Apex Fintech Solutions, Alpaca and DriveWealth. With the addition of QRT, Vertalo and Zero Hash, the alliance now spans shareholder registration, custody and clearing rails, market-making liquidity, and brokerage distribution.
Bullish describes the coalition as an open, non-exclusive industry group focused on common technical standards for tokenized securities, with an emphasis on interoperability and legal certainty.
Debate over unauthorized stock tokens
The expansion lands in the middle of a broader dispute over how tokenized U.S. stocks should be structured. According to the source article, The Wall Street Journal recently carried a full-page warning advertisement funded by a conservative organization that accused unregulated crypto venues of packaging listed company shares into so-called shadow tokens. The article also says 22 multinational companies, including Microsoft, Goldman Sachs and Alphabet, submitted letters of opposition to regulators.
The source frames the core objection from listed companies around earlier tokenization models that relied on unauthorized synthetic wrappers. In that setup, third-party platforms issue instruments tied to public equities without the consent of the issuer. The result, as described in the article, is that onchain buyers do not obtain the legal status of actual shareholders. They may lack governance voting rights, direct access to dividend distributions, and can also face pricing dislocations, anti-money-laundering gaps, and potential bankruptcy or run-related risks.
Issuer-sponsored tokens as the proposed alternative
The coalition is backing what it calls issuer-sponsored tokens. Under that model, the listed company authorizes the tokenization of its own equity and takes part in the issuance and circulation process. The idea is to move stock tokenization away from unilateral packaging by crypto platforms and toward an issuer-backed structure with a clearer legal basis.
A central part of that design is a direct link to the authoritative shareholder register, or cap table. Equiniti manages official shareholder records for thousands of listed companies globally, while Vertalo focuses on digital asset equity mapping. The source says the two connect blockchain smart contracts with traditional central securities depository records through real-time synchronization.
If that structure works as described, an investor holding shares through a traditional brokerage account and an investor holding an authorized tokenized version through a compliant onchain wallet would both be reflected on the company’s official shareholder register. Proxy voting, dividend distribution and corporate actions such as mergers and reorganizations would then be executed through smart contracts working with transfer-agent systems.
Alignment with the SEC framework cited in the report
The article also points to a U.S. Securities and Exchange Commission framework introduced in September for tokenized securities under what it calls an Innovation Exemption. It says one of the conditions for compliant onchain trading of U.S. equities is that trading venues must be able to verify that token holders receive the same full rights as traditional shareholders.
That is where the issuer-sponsored model is being positioned: as a technical and legal answer to the question of how token holders can be treated on equal terms with conventional equity holders.
Who is in the coalition
The member list reflects a full-stack approach. Bullish and Equiniti anchor the structure. Apex Fintech Solutions, Alpaca and DriveWealth contribute clearing or brokerage distribution capabilities. QRT adds quantitative and high-frequency market-making liquidity. Vertalo brings digital transfer-agent technology, and Zero Hash contributes B2B crypto and stablecoin infrastructure.
The source article argues that this setup could connect fragmented brokerage distribution networks with institutional order books through a common token standard, reducing the liquidity silos that have long defined traditional market structure. It also says listed companies could use that framework to reach younger investors in emerging markets without exposing their equity to unauthorized gray-market representations that may create manipulation or reputational concerns.
From experiment to market infrastructure
The report places the coalition’s growth in the wider push to connect real-world assets, or RWAs, with traditional financial infrastructure. With Bullish, Apex and QRT involved, the article presents tokenized U.S. stocks as moving beyond an early experimental phase and into a deeper institutional buildout.
It points to possible features such as 24/7 trading, atomic T+0 settlement and faster collateral mobility. Even so, the immediate focus in this announcement is not speed alone. It is the compliance architecture: issuer authorization, direct integration with the shareholder register, and standardized infrastructure meant to separate this model from the synthetic stock tokens now drawing criticism.