How blockchain is democratising access to stocks, bonds and ESG investments
Tokenised securities are traditional financial assets – like stocks, bonds or real estate – digitally represented on a blockchain as tokens that confer legal ownership rights. For investors, this means accessing high-value assets with fractional ownership, 24/7 trading, and transparent, immutable records – all while automating compliance through smart contracts.
The world’s major stock exchanges are now rapidly entering this space, transforming tokenisation from a niche crypto experiment into mainstream infrastructure.
What are tokenised securities?
Tokenisation converts ownership rights into digital tokens on a distributed ledger. Tokenised securities represent the digital evolution of traditional stocks, bonds and funds. Each token represents a fraction (or full share) of an underlying asset and can be bought, sold or traded just like traditional securities.
Security tokens differ from regular crypto tokens in that they provide legal rights and investor protections equivalent to those of traditional securities. When you invest in tokenised securities, you are buying regulated financial instruments on blockchain infrastructure.
What this means for investors
These are some of the advantages of tokenised securities:
- Democratised access to illiquid assets – previously inaccessible assets, such as commercial real estate, fine art and private equity, are now available in smaller denominations through tokenised securities. A £10 million property can be divided into 1 million tokens, letting investors buy exposure with as little as £10.
- Enhanced liquidity – tokenisation transforms illiquid assets into tradable digital tokens, enabling secondary market trading for what were previously locked-up investments. This is one of the key benefits of tokenised securities for retail and institutional investors alike.
- Lower costs & faster settlement – blockchain eliminates many intermediaries (eg brokers, custodians and clearinghouses), reducing fees. Smart contracts automate dividend distribution, interest payments, and compliance in tokenised securities markets.
- Transparency & trust – every transaction is recorded on-chain, providing real-time ownership verification and audit trails that traditional systems cannot match. This transparency is a major advantage of tokenised securities over traditional investment vehicles.
What major exchanges are doing in this space
The world’s biggest exchanges are investing in tokenisation, which signals that blockchain-based securities are joining mainstream markets:
- The London Stock Exchange Group launched its Digital Markets Infrastructure (DMI) in September 2025, the first major global exchange to build blockchain infrastructure for private funds. The platform covers the full lifecycle, from issuance to settlement, and is expected to expand into more asset classes.
- Euronext is rolling out regulated access to digital assets across Europe via crypto-linked exchange-traded products and related initiatives. Its focus is on integrating digital assets into regulated markets while keeping strong trading and post-trade services.
- NYSE is developing a Digital Trading Platform for tokenised securities with Securitize, a fintech. Formalised via a Memorandum of Understanding in March 2026, the platform aims to support 24/7 trading, fractional ownership and near-instant settlement of tokenised stocks and ETFs.
- Nasdaq announced its equity token design in March 2026, allowing shares to be issued, traded and settled in tokenised form while preserving shareholder rights and regulatory protections. This approach integrates tokenisation into existing market structures.
- Singapore Exchange (SGX) operates digital infrastructure through Marketnode, a joint venture with Temasek. Aiming to foster digitalisation across an interoperable, multi-asset ecosystem, Marketnode initially focuses on bonds. It partners with issuance platforms to provide Asia’s first integrated issuance-to-settlement and asset servicing infrastructure.
The ESG angle
The regulatory angle
Tokenised securities are regulated financial instruments. In the UK, the FCA has moved beyond general existing frameworks, launching a Digital Securities Sandbox and publishing dedicated fund tokenisation rules in April 2026. In the EU, tokenised securities fall under MiFID II – not MiCA, which covers other crypto-assets – and require full KYC/AML compliance. In the US, the SEC confirmed in January 2026 that existing securities laws apply in full, without creating a separate regime. In Singapore, MAS requires compliance with securities, licensing and anti-money laundering regulations.
The bottom line for investors
Tokenised securities offer a compelling value proposition: fractional ownership of premium assets, 24/7 trading and automated compliance – all on a transparent blockchain. The fact that LSEG, NYSE and others are building regulated infrastructure signals this is no longer experimental – it is the future of market infrastructure.
The ESG angle is particularly powerful for impact-driven investors who want to:
- Track verifiable environmental and social outcomes on-chain
- Access previously inaccessible green projects with lower minimum investments
- Reduce – though not eliminate – greenwashing risk through transparent on-chain reporting
- Align portfolios with sustainability values while maintaining liquidity
As major exchanges mature their tokenisation platforms and regulatory frameworks solidify, tokenisation is poised to democratise not just access to assets, but also access to meaningful ESG impact – making sustainable investing more transparent, efficient and inclusive.
Final thoughts
Tokenised securities represent a fundamental shift in how capital markets work. The involvement of major exchanges confirms that blockchain infrastructure is entering mainstream finance – not replacing it.
For investors, this means expanded access to fractional commercial real estate, green bonds and private equity through regulated exchanges, all with the protection you expect from established institutions.
Three key takeaways:
- Start with regulated platforms (LSEG, Nasdaq, etc) that operate within existing frameworks
- Think long-term, not speculative – tokenisation is about efficiency, not quick gains
- Consider ESG as a filter – tokenised green bonds offer returns alongside more transparent environmental reporting than traditional alternatives
Through 2026 and beyond, tokenised issuance and settlement are becoming an established option for certain asset classes alongside traditional methods. The question is not whether tokenised securities will matter to your portfolio – it is when and how you will engage with them.
DISCLAIMER: This article is for informational purposes only and constitutes financial guidance, not regulated financial advice. P27 is not FCA-authorised, and Mauro Tortone is not a financial adviser. This does not constitute a personal recommendation to invest. Tokenised securities are regulated instruments, and all investments carry risk. Before investing, consult a financial adviser registered on the FCA Directory if you are based in the UK.
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