The SEC introduced its regulation crypto proposal to exempt specific digital asset offerings from standard securities registration, all while delaying its innovation exemption for digital securities trading while in the legislative arena, the clarity act does remain stalled in Congress until at least next month and against this regulatory backdrop, digital asset executives as well as financial industry leaders are scheduled to convene at the White House today.
Now digital asset exchange of bullet.
Recently executed and issue a sponsored tokenization of its own stock without a special purpose vehicle.
Joining us to weigh in at the New York Stock Exchange is Thomas Cohenbull global head of tokenization.
Thomas, good morning.
Thank you so much for joining us.
Good morning.
Good to be back.
Well, here we are in the second half of 2026, and if the first half is any indicator, we can expect plenty more heading into the final months of this year.
So when it comes to tokenization.
And in particular what Bullish is doing.
Why is it different from other models out there?
So what we're really excited about what Bullish is focusing on is with the pending acquisition of Aquinity that we announced in May and is set to close in January, it means that we've assembled the final puzzle piece to have a full end to end, full ecosystem for tokenization of equities.
And if you look at the three different models that you really see, you see the wrapped model that's really seen overseas focus, you've seen the DCC focused model.
That uses entitlements and then you have the issuer sponsored model which is really where we're focused with Equinity and Bullish and that model we're excited by because it means that we can really transform what it means for issuers and investors to really build out that new ecosystem.
And you also mentioned equity, so that is something that viewers may not be familiar with in terms of the role of the transfer agent.
So why is this so important when it comes to Bullish's vision.
So Aquinity is the world's 2nd biggest transfer agent.
They are the TA for about a third of the S&P 500.5 of the FTSE.
So they have a large global footprint and really their job is to work with issuers to help them count their shares and make sure that they know where all their shares are throughout the entire ecosystem.
And so really what this means is now we're positioned to work with issuers and help them think through what tokenization means for their business in the short term but also in the longer term.
And we recognize this is going to be a journey, but we're really excited.
Work directly with Aquiity once it really closes to be able to build out what we see.
And when it comes to tokenization, we hear about 24/7 trading being the big draw here.
But of course now that you are at bullish, tell us how moving on chain actually changes the game.
Yes, so I've really put it into two main categories.
The first one is kind of for those of us who are in the financial infrastructure arm.
We get excited about 24/7 trading.
We get.
About transparency and collateral mobility and the like, but really where we've really seen a lot of interest and where people's imagination have been captured has been in now with transparency.
It enables the issuer to be able to see exactly who their investors are.
So what does that mean?
That means that an airline can know who their investors are and have a separate boarding class for investors.
That means that a publicly traded shoe company can send coupons to their investors on Black Friday, and that means that Publicly traded coffee company can see who voted in their proxy and be able to send them a coupon for the next cup of coffee.
So it really transforms and upgrades the relationship that we have between the investors and the issues.
Yes, and Thomas, this leads me to my next question, and that is surrounding scaling.
So in order to scale, it requires everyone in the ecosystem to be on the same page.
So tell us where the bottlenecks are right now.
So that's where it really gets fun because you know we're not looking to upend.
System we're really looking to upgrade the system and Bullish can't do it alone.
And so we're excited to be able to not only work with Aquinity in the future, but also a big part of my job is working with the market makers, with the exchanges like here at NICE, with the brokers and with the custodians to make sure that we have the support for this next wave of tokenized equities.
Yes, and speaking of Wall Street, another area we're paying attention to is the regulatory landscape, especially as we head into the final months of.
2026.
So give us your take on what we're seeing in the nation's capital right now.
I will say making predictions in crypto is always hard and making predictions in DC is always hard.
So you put those together and it's, you know, I don't have a crystal ball.
What I will say is we're really excited about the conversations that we're continuing to have with regulators in DC, and we think we're really well positioned once we do get the green light to be able to work through the innovation exemption.
We think that we're really well positioned to be able to lead this next wave of adoption and you.
Speak to stakeholders as well as policymakers on a regular basis as well as market makers and exchanges.
So what are you focusing on building in the meantime as all of us wait for regulatory clarity?
Yes, so I think a lot of the time people think of the market either being off chain or on chain.
In reality, at least over the next decade, probably longer, we're going to be in this kind of middle where some of the system is off, some of it is on, and we really have to work to make sure there's as much interoperability as possible.
So one thing that we're working on and really focused on with counterparties across the ecosystem is making sure that interoperability is ground zero as we move forward.
And finally, before I let you go, we are winding down earnings season here in the US and Bullish just reported earnings and heading into 2026, institutional adoption tokenization were some themes that we're paying attention to.
So as we head into year end, what is bullish focus on?
We're really zeroed in on the equity acquisition and what it really means.
For our business, because once we can really begin to work with over a third of the S&P 500 to think about tokenization, it positions us to really be able to move this entire ecosystem on chain, and we're not just going to meet the market, but we plan to lead it with the full puzzle pieces that we'll have assembled by January.
Yes, and one more question for you.
You've been in the digital asset space for many years, so given what we're seeing in terms of price action versus what we're actually seeing when it comes to that intersection of trapline and D, what would you say to viewers?
I think it's fascinating because 3 or 4 years ago, you're right, when Bitcoin was really high there was a lot of focus and then when Bitcoin went lower where we are today, that focus would shift back to the core business.
Now we're seeing that this infrastructure upgrade is part of the Trad 5 firms' core businesses and so we're seeing unparalleled excitement for tokenization, what it means for today's system.
Thomas, always great talking to you.
Thank you so much for joining us live here at the New York Stock Exchange and thank you so much for sharing all of your insights today.
Thanks so much.
Thank you.
