Nexus introduces tokenized public shares on Ethereum through Securitize deal

FG Nexus has recently made headlines by announcing a groundbreaking agreement with Securitize. This agreement will allow FG Nexus to tokenize its common and preferred shares directly on the Ethereum blockchain. This move positions FG Nexus as one of the first companies listed on the Nasdaq to offer tradable equity in the form of digital tokens.

The agreement between FG Nexus and Securitize will enable shareholders to convert their common and preferred shares into Ethereum-based tokens. These tokens will carry the same rights and benefits as traditional stock shares. FG Nexus is set to become the first U.S. exchange-listed company to fully tokenize a dividend-paying preferred share, known by the ticker symbol FGNXP.

The tokenization process relies on Securitize’s SEC registered broker-dealer, Alternative Trading System (ATS), and transfer agent infrastructure to ensure regulatory compliance and legal enforceability. FG Nexus has also taken steps to build an Ethereum-focused treasury, raising approximately $200 million in a private placement and holding around 47,000 ETH, valued at nearly $208 million.

The announcement of this agreement took place on October 2, when FG Nexus and Securitize shared their plans to tokenize FG Nexus shares on the Ethereum blockchain. Initially, the focus will be on tokenizing the common stock (FGNX), followed by the perpetual preferred equity (FGNXP). This initiative aims to bring dividend streams entirely onto the blockchain for the first time in U.S. public markets.

By tokenizing FGNXP, FG Nexus is a pioneer in offering on-chain dividend payments to shareholders. This innovative approach allows distributions to flow directly into token holders’ wallets through smart contracts, eliminating intermediaries and reducing costs and delays. The partnership with Securitize provides important regulatory protections, ensuring that tokenized shares comply with securities laws and maintain legal rights and obligations.

FG Nexus’s strategy reflects a strong commitment to Ethereum and blockchain technology. The company’s recent private placement raised $200 million, and its treasury now includes a significant amount of ETH. This financial foundation positions FG Nexus as a key player in the blockchain space and demonstrates its confidence in the future of decentralized finance.

While this move represents a significant step forward in the intersection of traditional finance and blockchain technology, there are risks and challenges to consider. Regulatory uncertainties, technology and security risks, market liquidity, and the complexity of managing dual systems all present potential obstacles. However, FG Nexus’s decision to tokenize its shares underscores the growing influence of blockchain in mainstream finance and its potential to reshape ownership and value transfer in the future.