Former NYSE President Joins Bullish to Lead Push for Tokenized Stocks

Stacey Cunningham joins Bullish to lead tokenization efforts

Stacey Cunningham, the former president of the New York Stock Exchange (NYSE), has joined the digital asset platform Bullish as its new president. Cunningham believes that involving the companies that issue stocks is the primary way to successfully bring traditional securities onto blockchain networks.

A blockchain is a digital ledger system used to record transactions. Tokenization refers to the process of turning traditional assets, like company shares, into digital tokens that can be traded on these networks. Cunningham led the NYSE from 2018 to 2022 and now aims to help Bullish build a platform focused on these digital assets.

Key highlights of the transition

• Stacey Cunningham joined Bullish as president this week to oversee its expansion into tokenized securities.
• Bullish plans to acquire Equiniti, a shareholder-recordkeeping business, for $4.25 billion.
• Recent reports show that 56 out of 62 major companies objected to their shares being traded on certain new blockchain-based venues.
• Cunningham argues that stock issuers have been left out of the tokenization conversation for too long.

Focusing on the companies that issue stocks

Cunningham stated that much of the current work in tokenization is "synthetic," meaning it happens without the involvement of the companies that actually issue the stocks. She believes that for tokenization to succeed, these companies must have a direct role and more control over how their shares are handled and traded.

By combining the trading services of an exchange with the recordkeeping capabilities of Equiniti, Bullish intends to create a platform that serves the needs of these companies. This approach is designed to address the concerns of large firms that have previously resisted blockchain-based trading.

Current challenges in the tokenized stock market

Building a market for tokenized stocks has proven difficult. A recent tally showed that companies like Apple, Amazon, and Tesla objected to their shares being included on a planned tokenized-stock venue backed by other exchanges. These objections suggest that companies want more say in how their shares are moved into the digital asset space.

Despite these early hurdles, Cunningham believes the shift to blockchain technology is inevitable for traditional financial markets. She noted that it is no longer a question of whether assets will be tokenized, but rather how long the process will take.

Why this matters for traditional finance

The move represents an attempt to bridge the gap between Wall Street and the crypto industry. If major companies become comfortable with tokenization, it could change how stocks are traded and managed globally. Cunningham suggested that Bullish can move forward with its plans regardless of whether the United States passes new cryptocurrency legislation.

What happens next

Bullish is moving forward with its $4.25 billion acquisition of Equiniti. This purchase is seen as a vital step in building the infrastructure needed to support tokenized stocks while keeping shareholder records accurate and under the control of the issuing companies.

Sources

• CoinDesk