Abstract
The emergence of tokenized securities is accelerating, with incumbents like NYSE and Nasdaq developing platforms to trade digital representations of public shares. Regulatory approval is still pending, and no platform—public or private—is live as of this writing, including Securitize and Figure. Ohanae, however, is uniquely positioned to lead this market with a clean-slate, off-exchange model that integrates tokenized public securities, semi-public securities, private offerings, investment contract assets, and ancillary assets. By combining regulated custody, end-to-end investor ownership, programmable corporate actions, and capital formation capabilities, Ohanae is redefining what a compliant, scalable tokenized securities market can deliver.
The Current Landscape: Incumbents Enter Tokenization
NYSE recently announced the development of a digital platform designed to enable 24x7 trading, on-chain settlement, stablecoin funding, and fractional share transactions, all while maintaining shareholder governance and dividend rights. The press release highlights that regulatory approval is required and settlement infrastructure remains tied to regulated custodians and legacy clearing systems.
Similarly, Nasdaq is partnering with DTC Tokenization Services to facilitate a digital twin approach, providing ATS-based access to tokenized assets. These efforts illustrate that even the largest incumbents are proceeding cautiously, balancing innovation with the need to remain compliant within existing securities law frameworks. As of today, neither NYSE Digital nor Nasdaq Tokenization platforms are live.
ATS Platforms: Expanding Access Without Disrupting Exchanges
ATS platforms such as Securitize and Figure OPEN play a valuable role in enabling digital and semi-public assets—for example, tokenized funds. They facilitate compliant issuance, secondary trading, and access to verified investors.
However, ATSs do not replace national exchanges. Their liquidity is primarily participant-driven, and continuous exchange-style market-making is limited. ATSs cannot fully internalize liquidity, deliver T+0 settlement for legacy shares, or provide end-to-end investor custody with programmable corporate actions. While these platforms broaden access, they do not redefine market structure.
Why Ohanae Is Different
Ohanae represents a fundamentally different approach:
1. Off-exchange tokenized securities classes
- Ohanae can create new tokenized share classes for public issuers without replacing the existing Class A shares listed on NYSE/Nasdaq.
- Investors gain access to a separately tokenized market designed for 24x7 trading, instant settlement, and programmable corporate actions.
2. Capital formation capabilities
- Unlike ATS-only platforms, Ohanae integrates issuance, subscription management, and secondary trading, covering public, semi-public, and private securities under one regulated structure.
- This includes investment contract assets and ancillary assets eligible under exemptions such as Reg A+ equivalent, and other capital formation frameworks.
3. Regulated custody and end-to-end ownership
- Ohanae maintains the investor relationship, providing secure, SPBD-aligned custody, private key recovery, and OUSD settlement tied to customer protection rules.
- Investors directly hold tokenized securities in a fully auditable, on-chain ledger while maintaining legal rights to dividends and governance.
4. Hybrid principal/AMM liquidity
- Ohanae Securities functions as a principal dealer, ensuring liquidity even for thinly traded assets, supported by AMM-inspired mechanisms that enhance continuous trading.
- This contrasts with ATSs, which rely primarily on participant orders and limited after-hours liquidity mechanisms.
5. Price transparency and investor confidence
- Ohanae references NBBO (National Best Bid and Offer) from consolidated CTA/UTP feeds for NYSE/Nasdaq, helping investors gauge fair value.
- This occurs without requiring Ohanae to become a full exchange member or merge with traditional venues.
Market Implications
- NYSE and Nasdaq are deploying tokenized securities cautiously, relying on legacy infrastructure and regulatory approval. Their approach mitigates risk but limits flexibility, speed, and programmable features.
- ATS platforms like Securitize and Figure OPEN expand access but cannot offer T+0 settlement for legacy shares, integrated capital formation, or dealer-principal liquidity.
By contrast, Ohanae operates a clean-slate, off-exchange model, capable of:
- Delivering instant settlement for tokenized securities, including public share classes, semi-public offerings, and private securities.
- Providing capital formation and subscription services integrated with secondary trading, all under one regulatory framework.
- Maintaining direct investor relationships, custody, and programmable corporate actions, creating an experience unavailable on ATSs or legacy exchanges.
Strategic Positioning: NYSE, Nasdaq. Now, Ohanae.
If executed successfully, Ohanae's model could capture a complementary market segment alongside traditional exchanges:
- Investors would continue using NYSE/Nasdaq for Class A shares.
- Ohanae offers tokenized Class B shares, 24x7 liquidity, atomic settlement via OUSD, fractional ownership, and programmable corporate actions.
- ATSs, while useful for private and semi-public assets, cannot replicate the speed, liquidity, or capital formation integration that Ohanae delivers.
In effect, Ohanae creates a market that complements, rather than competes with, legacy exchanges, while simultaneously establishing leadership in off-exchange tokenized securities.
Execution Sensitivity
Success depends on:
1. Regulatory alignment
- Ohanae is the first platform positioned to secure regulatory approval, establishing a foundation for a compliant, off-exchange tokenized securities market.
2. Liquidity infrastructure
- Hybrid principal/AMM mechanisms ensure continuous trading and inventory management, even for thinly traded assets.
3. Investor experience
- End-to-end custody, direct account ownership, and programmable corporate actions create a differentiated value proposition.
4. Capital formation
- Integrated issuance and fundraising services provide a competitive edge absent in ATS-only or legacy exchange models.
Conclusion
Tokenized securities are moving from concept to reality, but no platform is live today, including NYSE Digital, Nasdaq Tokenization, Securitize, and Figure OPEN.
Ohanae's clean-slate approach uniquely positions the platform to:
- Deliver compliant, off-exchange tokenized securities markets.
- Integrate capital formation, end-to-end custody, and programmable corporate actions.
- Offer continuous, principal-backed liquidity and near-instant settlement.
- Complement existing exchanges while creating a new, investor-centric market.
In short, Ohanae is not trying to replace NYSE or Nasdaq. Instead, it is creating a new frontier for tokenized securities, spanning public, semi-public, private, and ancillary assets—a market that traditional exchanges and ATSs are structurally unable to offer today.
References & Part Links
- Part I: The Coming of Age of Tokenized Markets: Why a Clean-Slate Market Structure Is Finally Possible
- Part II: The Coming of Age of Tokenized Securities Markets, Part II: How Ohanae is Redefining Public Securities and Capital Formation
Disclaimer
Ohanae Securities LLC is a subsidiary of Ohanae, Inc. and member of FINRA/SIPC. Additional information about Ohanae Securities LLC can be found on BrokerCheck. Ohanae Securities LLC is in discussions with FINRA about exploring the expansion of business lines for the broker/dealer. Any statements regarding abilities of Ohanae Securities LLC are subject to FINRA approval and there are no guarantees FINRA will approve the broker/dealer's expansion.
Ohanae Securities is seeking approval to be a special purpose broker-dealer that is performing the full set of broker-dealer functions with respect to crypto asset securities – including maintaining custody of these assets – in a manner that addresses the unique attributes of digital asset securities and minimizes risk to investors and other market participants. If approved, Ohanae Securities will limit its business to crypto asset securities to isolate risk and having policies and procedures to, among other things, assess a given crypto asset security's distributed ledger technology and protect the private keys necessary to transfer the crypto asset security.