Securitize Markets Wins FINRA Approval for On‑Chain Settlement

On May 4, 2026, Securitize said its broker‑dealer unit, Securitize Markets LLC, received expanded permissions from the Financial Industry Regulatory Authority through the Continuing Membership Application process.

The approval extends the broker‑dealer’s authority to custody tokenized securities, settle transactions on‑chain using stablecoins, and serve as an underwriter and selling‑group participant for initial and secondary tokenized securities offerings.

Under the new permissions, Securitize Markets can hold tokenized securities inside the broker‑dealer and complete settlement on the blockchain with stablecoins. Company filings describe the design as enabling “atomic” swaps — single, simultaneous exchanges that transfer both the security token and the cash equivalent at once — which reduces the number of separate accounts and manual reconciliation steps.

Securitize said the permissions allow its alternative trading system to perform clearing and settlement in a more direct way, moving trades through trading, clearing and settlement without requiring separate custodians or payment processors to complete the final exchange on‑chain.

The FINRA clearance was granted through the Continuing Membership Application process that broker‑dealers use when adding major capabilities or new business lines. The expanded permission set covers custody, settlement, underwriting and participation in selling groups across the tokenized‑security lifecycle.

Carlos Domingo, co‑founder and CEO of Securitize, described custody inside the broker‑dealer as “a foundational unlock” for regulated on‑chain markets, saying it lets the firm facilitate atomic settlement transactions between securities and cash equivalents within its broker‑dealer ATS. Brett Redfearn, president of Securitize, said the underwriting and selling‑group permissions enhance the firm’s ability to support tokenized IPOs and follow‑on offerings.

Tokenized securities are digital representations of assets such as stock or bonds issued on a blockchain. Stablecoins are digital tokens designed to hold a stable value relative to a fiat currency. Atomic settlement completes both sides of a trade at the same time, removing the period of settlement risk that can occur when transfers happen in separate steps.

Before this approval, on‑chain securities trades typically required multiple intermediaries, separate custody relationships and off‑chain steps to finish payment and ownership transfers. Securitize stated that keeping custody, trading, distribution and settlement inside a regulated broker‑dealer creates a more direct path for tokenized offerings and secondary trades.