One Share, One Chain: T7X Wants Wall Street’s Wrapper Problem Wrapped Up

T7X Equities has developed a “native issuance” model for tokenized shares that links blockchain records to authorized securities from the outset, rather than creating separate tokens that merely track conventional shares held by brokers or custodians. “What does the token legally represent, and who authorized it?” T7X Chief Marketing Officer Ivan Kan asked in an essay shared with Decrypt and a later Forbes Technology Council article.

Kan cited Pantera Capital research covering 593 tokenized assets across 11 asset classes, finding that 77.6% were “digital wrappers around traditional infrastructure” rather than securities in their own right. Under T7X’s approach, the token forms part of the authorized issuance and passes through issuer authorization, investor verification and transfer-agent validation to achieve “one security, one authorized issuance, one ownership record, one digital representation.” “Blockchain does not eliminate those corporate and securities-law requirements,” Kan said.

The framework uses the “certificate token” structure recognized under Wyoming, Delaware and Nevada corporate law, which allows shares to be represented electronically on a blockchain. T7X is incorporated in Wyoming, while its transfer agent maintains the official master securityholder file and the blockchain records transactions, keeping the legal ownership record in the conventional system regulators expect. In T7X Equities’ administered offerings, the company serves as transfer agent, registers with the SEC and handles transfers and the master file.

T7X’s first offering under the model is Tranquil Healthcare Fund I, a Tier 2 Regulation A+ offering of up to $75 million that the SEC qualified on June 29. T7X Equities issues tokens representing the fund’s shares on Trusted Smart Chain and delivers them to investors’ wallets. “There’s a registered, SEC-regulated gatekeeper that determines who owns which security at any point in time,” T7X Chief Executive Pablo Penaloza said.